
What I Have Learned from My Arbitrage Experiences with Cryptoassets - wslh
https://blog.coinfabrik.com/what-i-have-learned-from-my-arbitrage-experiences-with-cryptoassets/
======
Animats
Wallet "under maintenance". Yeah, right.

If that happens regularly, you have to assume the "exchange" is front-running,
trading for their own account ahead of customer trades.

~~~
fwdpropaganda
Well if you believe this we can go the extra step and assume that the exchange
is _causing_ the wallet "maintenances" to run up the price of a coin they want
to sell to their customers.

~~~
aphextron
>Well if you believe this we can go the extra step and assume that the
exchange is _causing_ the wallet "maintenances" to run up the price of a coin
they want to sell to their customers.

This isn't hard to believe at all. In fact that sounds like a pretty tame
level of scamming for the crypto world.

------
doomslice
Have you tried doing any arbitrage on any of the DEX out there (the only one I
have experience with is the Stellar DEX).

If you manage the offers yourself (rather than going through some client)
there are no exchange fees, and the transactions are nearly instant.

There could be two approaches to it:

1) Find pairs/paths within the order book that can make a profit. There's
practically no fees here so I suspect the margins will be pretty thin.

2) Use "anchors" to convert your Stellar assets back into the real
cryptocurrency, and then deposit again them via another anchor (or exchange)
and complete your trade.

~~~
fedecaccia
DEX could be a good idea. However, I've tried something without success. In
waves, for example, you can sell btc for USD tokens with good profit, but you
can not extract them. When exchanging with other ctyptos there is no high
volume, then I've found bid / ask prices with high spread.

------
mdb333
well to be fair arbitrage in traditional markets only really works at massive
scale.

Its also part of the invisible hand that brings equilibrium to markets.
Unfortunately its not really accessible to the average investor.

~~~
fedecaccia
What do you mean on a large scale? in cytpo eschanges, large orders only lead
you to pay too expensive (or sell too cheap)

~~~
rramdin
Building a sustainable arbitrage business requires scale. Margins are thin and
should always be getting thinner, so to remain viable, you have to pursue ever
more exotic arbitrage opportunities. Arbitrage opportunities encourage a speed
race, and the way to win that race is to use ever-increasing resources to
elbow out competition and discourage newcomers.

