Different exchanges have different rates to buy BTC.
So, how about buying in an exchange which has a lower BTC rate, send that BTC to an exchange which has higher sell rate, and sell to make a profit?
0
-
Bitcoin can only be bought or sold via an exchange or an agreed transaction between buyer & seller. Your private wallet is merely showing you an exchange rate quote that it sources from some exchange (usually configurable as a preference). – venzen Dec 25 '17 at 7:31
1
Yes, you can do that, but it may be difficult to do. This process is called arbitrage and is something that occurs in other markets, not just in cryptocurrency trading.
Keep in mind that if you do this, the price difference might be gone by the time that the other exchange accepts the deposit.
Alternatively, if you have enough capital, you can keep money on multiple exchanges and make same sized trades (e.g. buy 1 BTC on one exchange and sell 1 BTC on the other). However you will still need to rebalance by making transactions, and during that time, you will not be able to perform arbitrage.
answered Dec 25 '17 at 7:24
-
Also, various parties may claim fees on the transactions, which can eat your profits. – Someone Somewhere Dec 26 '17 at 8:32
