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What you are describing is called Arbitrage and is done by many traders for a variety of different assets, not just cryptocurrencies. This is only guaranteed to make you money so long as there is a price difference between exchanges. The end result of many people doing arbitrage is that the exchanges all settle onto the same price. The main difficulty in ...


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Every output of a transaction needs to be explicitly spent as an input eventually, but there is no need to stage deposits separately and resend them to yourself again. Maybe I'm missing something, but you could and should give out addresses of your service's wallet to your users and thus get deposits directly into your wallet. If you give each user a new ...


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What goes wrong is that you make a profit on every trade, but you are holding lots of bitcoin when it goes down and lots of whatevercoin when it goes down. Adverse selection causes you to take huge losses when you aren't trading! When bitcoin is going down, everybody wants you to take theirs. When bitcoin is going up, everybody wants yours.


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