How to make money with Bitcoin? Can I increase my bitcoins? How is Bitcoin profitable? These questions are usually asked from the first wisdom of most users who have entered the Bitcoin world. To us, the answer lies in doing arbitrage by buying and selling transactions. In our article, we will first try to explain what the arbitrage concept is and then give some information on how to do it.
What is arbitrage? Arbitrage is the commodity on the market, gold (commodity with the highest trading volume), exchange, stocks, etc. trading in assets in all commercial activities, including all assets and instruments subject to commercial activity, at the same time in different market conditions - in order to make profit from price differences between various stock exchanges. Arbitrage generally tends to eliminate price differences between the two markets, in other words, when prices are arbitraged between the other stock and the other, the price differentials decrease; but the arbitrage opportunity can always be reborn. Arbitrage is exactly the opposite of "low buy high sell". In other words, arbitrage is to buy a low price from a market and sell it at a high price simultaneously in the other market. For example, currencies are traded at various markets throughout the world. Although the prices are generally similar to all the markets, sometimes the selling price in a stock market may be lower than the buying price in the other stock market. In this case, when the simultaneous purchase and sale is made, the difference between the two prices will result in an arbitrageous profit. When underdeveloped countries are considered, arbitrage can be the buying and selling of commodities in different cities of an individual country; in developed countries arbitrage is often used to refer to international activities, including exchanges, short-term interest rates, gold prices and collateralized securities. As a result, arbitrage is seen as an important instrument for today's financial world.
How do you earn money from Bitcoin by doing arBITraj?
In this section, information and experiences and observations will be tried to be introduced for new users of Bitcoin.
As mentioned in the definition of arbitrage, one of the most important elements is to buy and sell simultaneously or in a very short time (the shortest time is indicated here, not simultaneously for the Bitcoin world). First of all, it is not advisable to arbitrage between Bitcoin and currencies; because the transfer of Bitcoin from one stock exchange (this concept to several trade sites) takes 30 minutes to 1 hour depending on the density. In the meantime, prices may be reduced and the expected profit may be reduced or even harmed, and when it is added to the difficulty of transferring money (USD, EURO, etc.) it becomes absolutely out of business.
So, how is it done? Since speed is so important in Arbitrage, it is most logical to head to the subcoins such as MAX or Quark, which can be transferred within 5 minutes even during peak periods. Shuan finds hundreds of coins that can be transferred quickly; in this example, the underlying transaction volumes for handling these subcoins are high, as the high transaction volume is necessary to ensure profits by selling the coin quickly. This is a volatile situation. In fact, MAX and QRK may be trending in this period, and the volume of transactions may increase. After 1 month, another subcoin may be trending. In order to be able to distinguish this and choose the right coin, it is necessary to follow this market continuously. In short, there are two important points to consider in order to make arbitrage; fast transfer from one trade site to another; the transaction volume of the selected coin is high.
In the next step, the coin to be arbitraged is determined by looking at the transfer rate and transaction volume. To get started, you need to be a member of the trade sites and it is suggested to use two more sites. Cryptsy, Bter, and Mcxnow, which have a lot of coins and high transaction volume when choosing a trade site. (Shu'an reliable sites, but what can not be predicted in the future) sites will be in place.
As an example, it appears that all selected sites have MAX coin and that the transaction volume is high (as of the date the article was prepared), so use of MAX is in place. In addition, transaction volumes can be viewed at CoinMarketCap.com.
In most cases, it is easier to make purchases at the site with the highest transaction volume, and at low price when the transaction volume is low. For this reason, the sites to be purchased by looking at the transaction volume are determined as Cryptsy and Bter, and the site to be sold is determined as Mcxnow due to the high transaction volume. The reason for this is short.they may want to get rid of the coins at low price because they think they can not sell their coins in low volume sites. "
The next step is; To send some of the bitcoins to Cryptsy to Bter and the MAX to buy the lower price of Mcxnow's buy price, the buy orders in these two sites are to enter the ambush. When human beings' natural weaknesses and the fear of losing money are merged, people can panic and make false decisions and sell their coins to low prices. The reason for entering a buy order on two different sites is to increase the chances of buying at a lower price. When more orders are placed at the same price and lower price orders are issued, the chances of buying at lower prices will be higher; but since your amount of Bitcoin will be divided among more sites, your wife will also be able to get it done well, but with some experience and time spent in this area.
During the day, it is very important to buy and sell, evaluate and update the prices on the site and keep patient and follow-up. "Make sure that the purchase is made at a low price!" When the purchase is made, the MAX is transferred to the site to be sold immediately, BTC is loaded again.
In the last stage; the arbitrage transaction is completed by transferring the bitcoins on the sale site to the site (or sites) to be purchased. You can increase your profits by making more of these conversions during the day.