I second this question. If you can make Bitcoins out of thin air, then why are you selling it. How do you make more profit selling it than doing it yourself? Is there anything shady or risky about your process?
yes, i am running it myself and making a profit, but as i mentioned (in another post) it is a small amount. currently it is about $1 a day with a very small risk. it may grow, but that depends on volume or volatility growing at cex. the profit is directly tied to volume and volatility.
in terms of the risk. triangular arbitrage is in "theory" safe. in that it ONLY trades when there is guaranteed profit. in practice what happens is that other automatic trading bots can place the trade faster than your bot which means you have to wait for the trade to complete. the other risk is that there can be a network problem. the triangular arbitrage needs 3 trades to complete, if only 2 complete and the network goes down, you can be left scrambling to fix that last trade.
both the risks seems to be fairly managable from the 1 month or so that i have been successfully going.
so why am i trying to sell it? if i can get $50 straight up rather than wait i will do it. also, "quant trading" from the real world stock market is way way advanced on what this app does, so i have plenty of new trading bots to create and in some fantasy land of mine i would love to be the guy that created the first set of software for it on the bitcoin market
I might also add, that to give an analogy. if bitcoin mining is so good, why do cex sell cloud mining and not keep it for themselves?
As with them the answer is that it is more profitable to build a customer base and profit from them and let them then make a small profit on the mining
Mining is not marketed as risk free though. I have personally made some money through automated inter-exchange arbitrage but I ended up concluding that the risks outweighed the rewards at current time (maybe intra exchange is less risky).
most of the inter exchange arbitrage opportunities are eaten up by the fees and because there can be a time delay across exchanges it also adds risk. The intra trading (especially in my case ) has those risks minimized. there are no fees on cex and the trades happen very fast.
in terms of the risk. triangular arbitrage is in "theory" safe. in that it ONLY trades when there is guaranteed profit. in practice what happens is that other automatic trading bots can place the trade faster than your bot which means you have to wait for the trade to complete. the other risk is that there can be a network problem. the triangular arbitrage needs 3 trades to complete, if only 2 complete and the network goes down, you can be left scrambling to fix that last trade. both the risks seems to be fairly managable from the 1 month or so that i have been successfully going.
so why am i trying to sell it? if i can get $50 straight up rather than wait i will do it. also, "quant trading" from the real world stock market is way way advanced on what this app does, so i have plenty of new trading bots to create and in some fantasy land of mine i would love to be the guy that created the first set of software for it on the bitcoin market
thanks for the input cryptolect