Domestic bitcoin platform arbitrage
I think bitcoin China is a reliable platform. It is the first and largest bitcoin trading platform in China. It is operated by Shanghai satuxi Network Co., Ltd. and was established on June 9, 2011. The team members are mainly from China, Silicon Valley and Europe
bitcoin world is based on credit, and Chinese brands of bitcoin have high credibility in the global bitcoin field
explain the situation with a simple example:
for example, the retail price of a watermelon in its procing area is 50 cents a catty. Here is not the wholesale price, but the price that people in the procing area buy when they want to eat a watermelon. So the watermelon in the city's high-end District supermarket selling price may be 1 yuan a Jin, why such a 5 Mao gap? In short, because of different locations, because the scarcity of watermelon is different
these virtual currencies may have different buying and selling prices on various platforms at any time, resulting in price differences in different regions.
In short, the principle of brick Arbitrage: buy low and sell high, buy money from the place with low price and sell it at the place with high price, that is to earn the price difference of different platforms
but there are three risks in moving bricks:
A. time difference of currency transfer: it takes a certain waiting time to pick up or deposit the currency, so it may miss the best trading time
B. currency price fluctuation: if the currency price fluctuation is relatively large and the process of moving bricks has not been completed, the price difference has disappeared
C. platform problems: some trading platforms may shut down services from time to time, or even run away
principle: carry out brick arbitrage on two platforms at the same time to avoid the risk of "time difference of currency transfer" and "currency price fluctuation"
before moving bricks: the brick moving platform must support the same currency transaction, and the brick moving platforms must be able to transfer currency to each other
Step 1: price difference calculation. There are handling charges for currency trading and currency transfer, so you have to calculate the cost according to your own funds. Only when the price difference reaches how much can it be profitable to move bricks
Step 2: simultaneous operation. Buy BTC on the low price platform and sell BTC on the high price platform. At this time, the number of BTC holdings remains unchanged and the number of usdt increases You need to pay attention to transaction fees.)
Step 3: balance funds. It is difficult to predict which platform has a lower price and which has a higher price e to the price difference. Therefore, the two platforms that move bricks need to prepare usdt and BTC. When the price difference appears, it is convenient to move bricks There are also handling charges for cross platform currency transfer.)
the above is the principle and steps of risk-free arbitrage using BTC and usdt. It also has a big name: quantitative hedging. The fundamental purpose is to earn usdt, not BTC
You can take a closer look at this: Web links1. The reason is that only big funds can have considerable income, and only big funds can arrange deposits in various accounts. Buy this box and sell that one. You can refer to the previous use of Alipay (balance treasure) transfer does not require fees, because Celestica's large amount of funds stored in various banks, the daily customer hedging results. And this kind of business can only be completed with large capital
2. Speed. Arbitrage opportunities are fleeting, so only fast can seize the opportunity. The reason why Everbright's ETF was able to arbitrage before, and after oolong, it was able to inject so much capital into the market in a short period of time. Without it, it is only quick. It is said that in order to compete for this kind of safe arbitrage means, the competitors have reached the point of "competing physical distance".
