Arbitrage between Poloniex and Bittrex
Today Poloniex added STEEM and STEEM Dollar.
Because it is brand new market, the prices are really crazy there. There are more ways to make money from that. You can provide liquidity or simply make arbitrage trading.
How can we make money from it?
You can easily arbitrage between Bittrex and Poloniex. Just send STEEM and BTC to both Poloniex and Bittrex, check the prices and if the difference is above 1% (I sometimes it is as high as 5-10%), just sell on Poloniex and buy at Bittrex. If you don't have money left just make a transfer between the sites.
I made a screenshot from the different prices, you can see at Poloniex there are buy orders for 0.00565101 and Bittrex has sell orders for 0.0053999. It is about 4.6% profit.
If you sell 50 STEEM and also buy 50 at the same time you will make about 0.01 BTC.
Check it and make profit from the new market! :)
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Arbitrage is best won with computer programs and low latency internet connections. If you're doing well manually...congratulations!
Usually it works with smaller markets and low liquidity. Now because STEEM is new at Poloniex there is enough room for manual trading. But of course if you write a simple trading script that is the best for this job.
I know it's first day ago but I actually manged to take advantage on those arb opportunities.
right now it's very thin.
Yes, the opportunity closed really quick. With Lisk it was much longer.
Hello,
I was wondering if anyone else noticed the price differences between the two, and therefore decided to look it up on google, this is when i found your article. I would like to discuss further this strategy of yours and the technicalities of it. One day i noticed the price difference was 25% between the two sites for different altcoins. Is there anyway i can contact you to discuss this strategy? I believe there is emmense profits to be made by buying on one site and selling on another. I just dont understand how to get say for example, BURST, how could one buy burst from poloniex or bittrex, which ever one has the lower price, and get it into your other exchange fast, and with low fees so that you can make the profit from say even a 5% difference. If this does not make any sense, I am still interested in discussing this further.
Aaron L
I wrote an article that explains a simple way to arbitrage across cryptocurrency exchanges, and the math involved. Important to know what you are getting into so that you will not be trading at a loss. https://steemit.com/arbitrage/@kesor/the-math-behind-cross-exchange-arbitrage-trading