77

Many people already do this with bitcoin. In finance, this is called arbitrage trading, or simply arbitrage, sometimes even abbreviated arb. The reason for the price differences are fees for transferring between the bitcoin exchanges (you have to transfer both, bitcoins and fiat currency for a complete cycle) and fees for trading bitcoins against fiat ...


41

I've writen software to arbitrage on some US exchanges. I couldn't arbitrage without software because: It was hard to account for all fees to understand if an opportunity is profitable. It took a couple of minutes to evaluate opportunities (query an exchange's order book, query another exchange's order book, do an evaluation, execute a sell, execute a buy) ...


23

What's stopping people from doing so? What's the catch? The catch is that few people have been able to get US dollars out of Mt. Gox since June 20, 2013, when Mt. Gox imposed a "hiatus" on US dollar withdrawals. Mt. Gox has a long list of excuses for not paying their debts, which you can find on their site. Some of their excuses strain credulity. This ...


16

Technically it is possible to blacklist addresses, and it needs just the majority of the mining power to agree. The problem is arriving at the agreement: Nobody stands to gain from witch-hunts, so a consensus to block an address would have to be carefully built on solid proof, which is hard when there is no central organs with jurisdiction, nor a way to get ...


8

One of the major reasons standing in the way of profiting from arbitrage opportunities has to do with "volume". The volume for either exchanges is not high enough yet to support big trades. Large profits require large trades (in arbitrage). Making $1,000 may be feasible between exchanges, but that's an extreme best case scenario and using 10k in capital! ...


6

Something I am currently looking into, and a huge issue that nobody has really mentioned earlier is blockchain time. 1) Bitcoin is traded on a number of exchanges, however the entire process of buying on one exchange, transferring to another exchange and selling on that second exchange can take on the order of magnitude of 30 minutes(~10 minutes per block ...


4

I do not understand what do you mean by the current bitcoin price on the top (I can not see it), but I will clarify on some other numbers. Last - the price of bitcoin based on the last transaction. So if I bought 1.2 bitcoins with a price of 950$ and this is the latest transaction so far, this number will appear in the last. High - What was the highest ...


3

Bitstamp and any other exchange are companies and so can be insolvent. If you transfer $1000 to them in exchange for bitcoins. Until they send you the bitcoins they are in to debt to you for that amount. You could take them to court to recover that if they failed to provide the bitcoins or a refund. The court could issue an order allowing the companies ...


2

There is a website called Bitcoin Magnet that does exactly what you require. Check them out, they have good reviews. They convert a bank transfer containing your reference code into bitcoin (using Bitstamp) and send it automatically to your desired bitcoin address. You can therefore set up a standing order to buy on a regular basis. UK only.


2

I have been wondering about it myself for a long time now. I even thought of developing trading software (bot) that would automatically buy on one exchange and sell on MtGox. The price difference between BTC-e and MtGox can be as high as $100/BTC. The problem is how to get your cash (US$) out of MtGox? Last time I tried, I waited - in vain - for almost 5 ...


2

You simply don't know via any existing APIs that I'm aware of. Potentially you could regularly update a market depth API watching for large changes at a price point which would indicate a large order. However you can't tell whether someone has broken up a large order into a number of smaller orders, and using a bot it's trivial to cancel a large number of ...


2

By the looks of things the transaction never made it to the network from your client. Find the "reset blockchain" button in Multibit and wait for it to recover. You won't lose any funds (the ones you "sent" never left) and then you can give it another shot.


2

If your (UK) business is in an area where you have specific regulations to follow for anti-money laundering, and you do, you will already know the answer. (If it is not in the UK, you may have to find out if dealing with UK-registered Bitstamp means you'll have to start complying with UK law and its requirements like KYC: Know Your Customer.) Otherwise, the ...


2

It's not how all exchanges are handling this. Bitstamp is sending bitcoins in batch transactions. That means it is sending your bitcoins to your address and other users' bitcoins to their address in the same transaction. That means that bitstamp does not yet know the TxId when you submit your withdrawal request. That is the why. As for how to solve it, ...


2

Bitstamp does not offer credit, so your balance can not go below zero.


2

After 72 hours the transaction will get purged from the mempool if no miner has picked it up. Try resending the funds and include a transaction fee so that the miners will expedite your transaction.


2

I believe the EUR / USD conversions are preformed by the bank with which Bitstamp works. They have conversion rates which don't appear to be market-driven, but are set to a fixed rate that includes the bank's fees. The exchange rates link provided on the website leads here: http://www.raiffeisen.si/pripomocki/menjalniski-tecaj/


2

You are correct, the rest of your funds will be diverted. However, they will be diverted to a new "change" address that is also managed by your wallet. So, you will still own the change. For example, suppose your wallet contains 10 BTC [1]. If you send 0.01 BTC to a paper wallet address, then your client will automatically send the remaining 9.99 BTC to a ...


2

I figured this out. A "Limit" order is what I wanted to do. A limit buy order will trigger if the price hits the target or lower. A caveat for anyone unfamiliar like I was: the order won't necessarily be fulfilled at the price your specify, rather it will become a market order which will execute at the next best available price.


2

What i don't understand is: What purpose has the signing of a selected message by the third party, described at the end of the first page? Without this step, it is possible that the transfer you're observing is entirely unrelated to Bitstamp. They could have watched the chain for a while, waiting for a transfer of sufficient amount, and then claim that it ...


2

You might have been confused about what a "Trailing Stop Loss" really is. (Or I do missunderstood your question.) The answer can be found on Bitstamp's website: https://www.bitstamp.net/article/stop-orders-and-trailing-stop-orders/ What is Trailing Stop Order and how to use it? The trailing stop is more flexible than a fixed stop loss, since it ...


1

Nobody knows whether Bitfinex is insolvent or not. As a result, dollars at Bitfinex are worth less than dollars at other exchanges. This accounts for the price difference you see. To exploit this difference, you would have to send dollars to Bitfinex and command them to make what appear to be fraudulent transfers on your behalf. See this article for more ...


1

You don't need to worry about change addresses unless you're manually crafting a raw transaction or try to manually use funds from a paper wallet. Your online wallet or local wallet software is supposed to handle that for you.


1

A lot of this info is a bit outdated and as of now I still can't find anywhere that says Bitstamp is insured but Coinbase is FDIC insured for USD.


1

These functions return the high or low over for the past 24 hours. You can poll the API for this data as often as the API allows for (600 times over 10 mins according to your link). The data that it returns does only consider the past 24 hour prices however. If you want to find out the high and lower prices over a longer time frame you will need to look at ...


1

You can send any amount to a paper wallet without concern for the change. The critical part to worry about is when you spend the funds on the paper wallet. If you do not spend all of the funds whatever is left over will be used as a transaction fee regard less of the amount. uminatsu is correct in stating that this only occurs when you try and craft a raw ...


1

I haven't yet used Bitstamp's streaming API but I think it's fairly safe to assume that you will only get real-time changes via those pusher channels. That means you need to make at least one initial call to their official REST API to get the full orderbook, and then keep it updated by applying the changes that you receive from the streaming API. If you are ...


1

The short (slightly oversimplified) answer is that most consumer protection oriented laws (including Money Services Business and Money Transmitter laws) apply to the consumers themselves. So if you serve customers in the US, you must comply with the laws that protect those customers. IANAL, YMMV, etc. Consult an attorney specializing in MSB/Money ...


1

This data is available for sale here Kaiko is the only company which stores and distributes order books for Bitcoin and Ethereum. For Bitcoin, historical data traces all the way back to August 2015. For Ethereum (ETH only, not ETC), data starts in June 2016.


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