Join over 94,000 students, learn all you need to know about Bitcoin. One Email a Day, 7 Days in a Row. Bitcoin arbitrage hello bitcoin price the buying of bitcoins on an exchange where the price is very low and selling it at an exchange where the price is relatively higher.
The prices of Bitcoin vary on various exchanges, due to the fact that the markets are not directly linked, and the trading volume, on many exchanges, is low enough that the price does not adjust to the average right away. 14, and this is quite a decent opportunity for arbitraging. Thus, you can see that Bitcoin arbitrage seems like a wonderful opportunity to make some passive income, but there are a few barriers to it. Many exchanges require a lot of verifications in order to trade a large number of Bitcoins. Many exchanges have fees, which I have overlooked in the given example, that you should take into account. Pay attention to the transaction volume on each exchange as you may end up not being able to sell all of the Bitcoin you bought at the cheaper exchange.