01-15-2021, 04:37 AM
PSA: On Coinbase, ETC is still trading more than 20% above all other exchanges. If y
<!-- SC_OFF --><div class="md"><h1>What is arbitrage?</h1> <p>Arbitrage is profiting from the price imperfections between several pairs on a given exchange, or between different exchanges. It is the only reason prices even stay close to each other from one exchange to the other to begin with: a multitude of bots are developed to profit from such price differences, and thus help the market in having somewhat unified prices.</p> <h1>How could I profit from it in this case?</h1> <ol> <li>(Mandatory) Already have ETC on Coinbase.</li> <li>(Mandatory) Have access to another exchange that trades ETC at the "normal" price.</li> <li>Sell ETC on Coinbase around 9.5 USD (at the time of writing) and Buy it back on another exchange around 7.7 USD(T).</li> <li>Profit! You effectively sold your ETC for 9.5 USD and bought it back for 7.7. You now have the same amount of ETC, and ~1.8 USD per ETC bonus because of this operation.</li> </ol> <h1>Why does it happen in this case? Why is it still not resolved?</h1> <p>Since ETC was 51% attacked several times throughout the past years, Coinbase has decided that to deposit ETC on their platform, you would need <a href="https://help.coinbase.com/en/coinbase/trading-and-funding/sending-or-receiving-cryptocurrency/why-is-my-transaction-pending">91,000 blockchain confirmations</a>. This is approximately 2 weeks. In other words, you need to wait 2 weeks for you ETC deposit to arrive on Coinbase.</p> <p>Under normal circumstances, the price inefficiency would be solved immediately because deposits and withdrawals would happen in a matter of minutes/hours, and the new price would land somewhere in between the 2. But in this case since no one can bring ETC to Coinbase, this imperfection could last up to 2 weeks, at which point the inflows of ETC will start coming in to profit from this arbitrage opportunity.</p> <h1>Who are you and why do you care?</h1> <p>Merely a bot developer, my daily job is to code Crypto trading bots and to earn money for myself and clients for a fee. In the process and using what I learned so far, I try to help other less fortunate people that are missing some key trading concepts, or are simply new to the ecosystem.<br/> Any question you ever had about Trading that is still puzzling you? Feel free to drop it below and I'll see if I can have a shot at it! If not, I am sure other people in the subreddit would be delighted to do the same.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/EuW_MadWard"> /u/EuW_MadWard </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/kxf4ej/psa_on_coinbase_etc_is_still_trading_more_than_20/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/kxf4ej/psa_on_coinbase_etc_is_still_trading_more_than_20/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><h1>What is arbitrage?</h1> <p>Arbitrage is profiting from the price imperfections between several pairs on a given exchange, or between different exchanges. It is the only reason prices even stay close to each other from one exchange to the other to begin with: a multitude of bots are developed to profit from such price differences, and thus help the market in having somewhat unified prices.</p> <h1>How could I profit from it in this case?</h1> <ol> <li>(Mandatory) Already have ETC on Coinbase.</li> <li>(Mandatory) Have access to another exchange that trades ETC at the "normal" price.</li> <li>Sell ETC on Coinbase around 9.5 USD (at the time of writing) and Buy it back on another exchange around 7.7 USD(T).</li> <li>Profit! You effectively sold your ETC for 9.5 USD and bought it back for 7.7. You now have the same amount of ETC, and ~1.8 USD per ETC bonus because of this operation.</li> </ol> <h1>Why does it happen in this case? Why is it still not resolved?</h1> <p>Since ETC was 51% attacked several times throughout the past years, Coinbase has decided that to deposit ETC on their platform, you would need <a href="https://help.coinbase.com/en/coinbase/trading-and-funding/sending-or-receiving-cryptocurrency/why-is-my-transaction-pending">91,000 blockchain confirmations</a>. This is approximately 2 weeks. In other words, you need to wait 2 weeks for you ETC deposit to arrive on Coinbase.</p> <p>Under normal circumstances, the price inefficiency would be solved immediately because deposits and withdrawals would happen in a matter of minutes/hours, and the new price would land somewhere in between the 2. But in this case since no one can bring ETC to Coinbase, this imperfection could last up to 2 weeks, at which point the inflows of ETC will start coming in to profit from this arbitrage opportunity.</p> <h1>Who are you and why do you care?</h1> <p>Merely a bot developer, my daily job is to code Crypto trading bots and to earn money for myself and clients for a fee. In the process and using what I learned so far, I try to help other less fortunate people that are missing some key trading concepts, or are simply new to the ecosystem.<br/> Any question you ever had about Trading that is still puzzling you? Feel free to drop it below and I'll see if I can have a shot at it! If not, I am sure other people in the subreddit would be delighted to do the same.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/EuW_MadWard"> /u/EuW_MadWard </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/kxf4ej/psa_on_coinbase_etc_is_still_trading_more_than_20/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/kxf4ej/psa_on_coinbase_etc_is_still_trading_more_than_20/">[comments]</a></span>Kind Regards R