0

Consider the following scenario,

I have 365 USD in Btc-e and 1 BTC in Cryptsy, now I bought 1 BTC at a price of 362 USD in Btc-e and sell it on Cryptsy with 370 USD, now I made the profit of 4 USD (included txn fee), now the current market price of 1 BTC is 370 USD

Market price I mentioned was 1 BTC = 360 USDenter image description here

  1. How the market price affect my profit?

  2. Still I have 8 USD profit in Cryptsy or I made a loss/profit with respect to market price?

Improve this question
5
  • Note that both of those exchanges will charge you a fee - usually on the order of a third of a percent. (About 1 USD on each end.)
    – Nick ODell
    Nov 28, 2014 at 7:29
  • @NickODell, Ok lets take approx profit as 4 USD
    – M.R
    Nov 28, 2014 at 7:55
  • There is no one market price. Each exchange has it's own. Also you have made 0 profit until you have either the btc in your own wallet or the money on your back. I have a 10x profit on mtgox too. Other than that I don't understand your actual question.
    – Jannes
    Nov 28, 2014 at 9:54
  • @Jannes, If there is no one market price then how would you know the profit in USD?
    – M.R
    Nov 28, 2014 at 10:42
  • That's my point. You don't. As long as the USD is not in your bank account it's not USD but rather USD-on-Cryptsy or USD-on-BTCE. Or my USD-on-MtGox...
    – Jannes
    Nov 28, 2014 at 12:42

1 Answer 1

Reset to default
1

If you want to make money on arbitrage like this, you should have reserves on both exchanges, and at the moment when you are buying in btc-e, you should sell at cryptsy (for example). Otherwise te price can change to "wrong" direction when you are transfering bitcoins from btc-e to cryptsy or vice versa. Also, you should understand how to withdraw/deposit fiat to this exchanges fast with minimal expences, that can be the biggest issue especially for btc-e.

Improve this answer

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.

Not the answer you're looking for? Browse other questions tagged or ask your own question.