I presently use 2 completely different CEX’s for sure causes, after studying into SBF and the way he made his cash I’ve realised the two exchanges have completely different costs for Bitcoin (about $300 deviation) would this deviation be soaked up in switch price’s and purchase/promote price’s from the exchanges? If it is not soaked up by price’s then could not you simply purchase on one change – switch – promote at a revenue?
What am I lacking?
If it is profitable, bots instantly take action until it is not anymore. So it shouldn’t be profitable
It’s called arbitrage, and it’s usually already being exploited. Good luck!
https://en.wikipedia.org/wiki/Arbitrage
It’s very rare that it’s that large of a difference so the margins are very thin. Have to move lots of btc and cover the fees, plus market fluctuations while moving funds
You can’t transfer dollars between exchanges. They have to go through a bank at least a day for each wire or 3 days for each ACH transfer.
u are about 4 years late
>If it’s not soaked up by fee’s then couldn’t you just buy on one exchange – transfer – sell at a profit?
Yes you can, it’s called arbitrage. You should verify all the fees to see if it’s profitable. You do have the risk of any price fluctuations and also the risks of using CEXs. Usually the profit margins are small, so you’ll need large amounts of capital to make it work. If you do this with lots of money the fees will also be proportionally less since some of the fees are fixed fees.