Steem /SBD Arbitrage - Buy at Bitrex sell on Poloniex is this why Poloniex doesnt work?
For last few weeks since I created a Bittrex account I noticed a significant difference in price of SBD/Steem when compared to Poloniex (which was offline). So this gave me an idea why couldnt you perpetually buy SBD at Bittrex and sell at Poloniex and then rinse repeat. This is called Arbitrage - simultaneous purchase and sale of an asset.
At this moment SBD is 0.00056456 bitcoin on Poloniex and 0.00046500 bitcoin on Bittrex. This is a 21.4 % difference. True you would pay some fees each time you withdrew but that would be miniscule to the reward.
So i kept waiting for this Poloniex problem to be solved so this can be done, but as we all know we're still waiting. This made me think, is this problem related to this?
See with bitcoin/ethereum and most others the difference in the price of the coin on different exchanges is minimal and therefore probably not worth it.
Anyone else had similar thoughts?
irfo1
That's a good post , i need to check this too
Cheers
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EtherDelta is a Goldmine, insane arbitrage opportunity https://steemit.com/gifto/@fifelue/tips-be-a-millionaire-using-arbitrage
Great read! I just upvoted you. Please do the same and follow
Thank you will check it out
Good point ,this needs further investigation!
Thanks
By the time your coins are transfered from one exchange to another, the price on the other exchange will even out. If it was that simple everyone would do that.
Then you have to pay a commision to sell, buy and transfer coins. Al togethet 0.4-0.7% per flip.
True, but whats 0.4 %-0.7% when the difference was 21%
Well... if you can complete the transfer on time , then you are lucky. Honestly, good luck with it!
actualy now even lower than before 0.00045 on bitrex
was yesterday whole day like this, compare charts
So if Poloniex does open up the wallets again for deposit and withdrawal of STEEM and SBD, you will see this arbitrage opportunity dry up very very quickly exactly because of what you're describing. The market would take almost no time to correct itself.
true. Remember last week some of us lost money when we deposited to Poloniex, they gave it back to me (on polonioex) I sold it sent to bittrex and bought sbd again. It was only 6.748 SBD but on bittrex i bought 8.08 sbd for it. Now if i had more this would be much better. And when you say markets will correct yes they will but which way, will Bittrex go up or Poloniex down (since those are the main 2 exchanges). Remember that everyone is sending now to Bittrex pushing prices there more
I'm glad you earned a profit then! Go you! As for which side does the market correct on, you'll likely see it moving towards the middle assuming the volume of trades are relatively equal. If one side controls far more volume then it will likely dictate terms in terms of what direction the market moves to. Just a general rule but doesn't mean this is how it actually goes.
Makes sense, Poloniex i think is 70-80% and bittrex about 20-30%