thebitcoinarbitrage.com Review Is BItcoin Arbitrage Scam or Should I Invest

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Should You Invest in Bitcoin: 2020

This question will probably look silly 10 years from now.

Possibly, what do you think is going to happen?

Buying BTC now is a mugs game, BTC prices are going way lower than levels today, there isn’t demand hence the lowering price due to people selling out and waiting to buy in lower.

Mining on the most part is unprofitable so expect more selling, and more miners quitting.

If bitcoin is going to rise now would be the time to buy, but in my opinion sometime in 2020, or 2020 the altcoins with greater purposes, and better speed are going to take over the crypto market cap and leave bitcoin behind unless the lightning work is perfected, and bitcoin visa cards become mainstream. Currently though it doesn’t look like bitcoin is going to be able to compete.

Check Arbitrage Opportunities

Check major crypto exchanges in real time and find arbitrage opportunities according to your desired minimum percentage.
You can click on exchange links directly to buy or sell easily.

Selected min Arbitrage : 10% | Selected Base Currency : usd & btc | Arbitrage opportunities found : 156

The Beginner’s Guide to Bitcoin Arbitrage

By: Ofir Beigel | Last updated: 11/14/19

The fact that each Bitcoin exchange shows a different price for Bitcoin has given birth to the arbitrage phenomena. In this post I’ll explain exactly what arbitrage is and how it is conducted.

Bitcoin Arbitrage Summary

Bitcoin arbitrage is the process of buying bitcoins on one exchange and selling them at another, where the price is higher. Different exchanges will have different prices for Bitcoin, and some people manage to take advantage of this and generate profit out of thin air.

That’s Bitcoin arbitrage in a nutshell. If you want a more detailed explanation of Bitcoin arbitrage and how it’s conducted, keep on reading. Here’s what I’ll cover:

1. How Bitcoin’s Price is Determined

Before we can talk about arbitraging (i.e. buying at a low price and selling at a high price) we need to understand what “Bitcoin’s price” really means.

On any exchange, the price of Bitcoin is determined by the last trade done on that exchange. Since different exchanges have different amounts of buyers and sellers with different preferences, it’s only natural that prices won’t correlate 100%.

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You can view exchanges as closed markets that aren’t directly linked. On top of that, some exchanges have very low trading activity on them which makes Bitcoin’s price on them much more volatile.

As a result, some people try to buy Bitcoins “for cheap” on one exchange and then sell them at a higher price on another exchange. Here is a great video by Andreas Antonopoulos about why arbitrage opportunities exist:

2. A Simplified Example of Arbitraging Bitcoin

Let’s take a simple arbitrage example in order to illustrate how arbitrage is done. At the time of writing, the price of Bitcoin on Bitstamp is $11,561 while the price of Bitcoin on CEX.io is $11,645.

The difference between prices is $84, and this is quite a decent opportunity for arbitraging. Let’s say, you buy 100 bitcoins on Bitstamp at the rate of $11,561 each, and subsequently you sell them on CEX.io at the rate of $11,645 each.

In a perfect world you’d make $87 per Bitcoin.

Let’s get down to the math:

Number of Bitcoins bought in Bitstamp – 100

Price of each Bitcoin – $11,561

Total expenses – $11,561 * 100 – $1,156,100

Number of Bitcoins sold on CEX.io – 100

Price of each Bitcoin – $11,645

Total revenue – $11,645 * 100 = $1,164,500

Total profit – $1,164,500 – $1,156,100 = $8,400

An interesting thing to notice from the example above is that we need a relatively large amount of capital in order to make a substantial profit via arbitrage. However, in real life things are more complicated than the simplified example above.

3. Barriers to Bitcoin Arbitrage

When trying to arbitrage you’ll probably encounter several setbacks:

  1. It may take some time to verify transactions (to and from exchanges), and during this time the price of Bitcoin may change.
  2. Many exchanges require considerable verification steps in order to trade a large amount of Bitcoins.
  3. Exchanges fees, which I have overlooked in the given example, will eat away at your profits.
  4. Transaction volume need to be high enough on both exchanges to satisfy such large orders of buying and selling.
  5. Keep in mind that price differences can also reflect technical issues or reputation issues of an exchange. An interesting example is what happened during the last days of Mt.Gox where the price of Bitcoin was extremely low since traders didn’t trust the exchange to allow them to withdraw their funds (i.e. There weren’t many buyers on the exchange).

4. A Detailed Bitcoin Arbitrage Calculator

Now that you know what you will face in a real live Bitcoin arbitrage trade, let’s take an example that includes all of the different variants and fees involved. Relevant fees include:

  • Fiat deposit fees
  • Fiat withdrawal fees
  • Bitcoin deposit fees
  • Bitcoin withdrawal fees
  • Transaction fees (i.e. trading fees)

I’ve taken the liberty to create some sort of Bitcoin arbitrage calculator using a Google spreadsheet to show you how hard it can be to actually generate a profit.

Take a look below:

If you want to clone this calculator for yourself, feel free to make a copy using this link. As you can see, my “real world” profit comes to about a $10K loss, while I’ll need over $1.1M in capital. All of this suggests that making a profit through Bitcoin arbitrage is quite a difficult task.

In the case above, the main thing that’s eating away at my profits is the withdrawal fee from CEX. Once you get to deal with such large amounts you can reduce your trading and withdrawal fees by using OTC (Over The Counter) services.

Keep in mind that he bigger the spread (difference between buy and sell values), the more profitable the arbitrage. However, it still doesn’t amount to much unless you put large amounts of money at risk.

Another thing to take into account is that it can take up to 7 days for fiat deposits to appear on an exchange due to how slow the banking system is.

During that time, the spread can change drastically and eliminate any chance for arbitrage. So, the best tactic would be to keep some fiat currency on the exchange and choose the right time to execute the arbitrage.

Finally, any time you keep money on an exchange you’re putting your money at risk, as exchanges getting hacked or going out of business is unfortunately still common these days.

As I’ve demonstrated, you’ll need to keep a large amount of money on the exchange in order to be mildly profitable, so I’m not sure it’s worth the risk.

5. Frequently Asked Questions

Is Arbitrage Illegal?

Arbitrage is completely legal as the only thing that is being done is exploiting price gaps between exchanges. A person conducting arbitrage is just buying and selling as any other trader would do.

6. Conclusion – Should you try to Arbitrage?

The act of arbitraging Bitcoin is not as simple as it may seem at first glance. Overall, Bitcoin arbitrage may be an opportunity to make some passive income, but at the same time it involves huge risks.

Arbitrage is actually a positive process, unlike speculation, margin trading and other activities that can be viewed as market manipulation, and in some cases may even be truly harmful to the market as a whole.

Bitcoins should have the same price across all exchange. Arbitrage simply helps bring the exchanges together to the same page. As Bitcoin’s market grows, the gap between exchanges will narrow, as more and more people will conduct arbitrage.

As for the ‘how’, nowadays almost all exchanges have an API which can become a useful arbitrage tool.

Utilizing these APIs will allows you to create a custom arbitrage bot, so that you don’t have to sit in front of the computer all day. Still, even attempting to arbitrage manually can be very beneficial, as long as you watch closely and make sure you are placing simultaneous trades.

If you’ve had any experience with Bitcoin arbitrage I’d love to hear about it in the comment section below.

Bitcoin Trader Review – Comprehensive Scam Test

Bitcoin Trader claims to have a unique trading software that wins trades with 99.4% accuracy. Is this, however, even possible? Find out in the following Bitcoin Trader Review

Bitcoin Trader is a software that focuses on Bitcoin and its trading. On their homepage, they have a short introductory video where famous people talk about Bitcoin and how innovative the currency is. It really is possible to make money by investing in Bitcoin, but I hardly think that is is possible with Bitcoin Trader. They promise unbelievable results with just a 250$ deposit. Bitcoin Trader looks just too good to be true.

Emails – who are you, Dzhordzh Barker?

The first impulse for creating this review was a short email which was sent to me by Dzhordzh Barker who is associated with BitCoin Trader. I tried to find whether he is the creator of Bitcoin Trader, but there is no information about him on google or on the Bitcoin Trader website. In the email, he claims, to have a system that can make you $100K per month.

Bitcoin Trader incredible results guaranteed!

I am always very skeptical when someone promises me something that looks too good to be true unless it’s beneficial for both parties. So when I first read the information on BitcoinTrader.com claiming I can become the next millionaire, I knew right away it’s probably just another scam. And with Bitcoin Trader, I was right. Again. Do not fall for false promises of high profitability based on someone’s unique system. It is almost always a scam. The Bitcoin Trader software claims that you will earn at least $1,300 per day. I can see that hardly possible with a minimum deposit of 250$.

Members of Bitcoin Trader Community? Fake!

The testimonials published on the Bitcoin Trader website are fake and I have a proof of that. Do you remember the displayed traders who are so damn successful? Well, they are not. Because these pictures are stock images, just have a look.

Approved by Antivirus software? Hell no!

BitCoin Trader wants to make its visitors think the software is highly trustworthy. It tries to do that using an introductory video featuring famous people like Bill Gates, Richard Branson and many others talking about how great Bitcoin is. Furthermore, there are icons of well-known antivirus programs (McAfee, Norton, BitGo) indicating that these leading security software companies support the Bitcoin Trader project. However, know that they are there just to make you believe that Bitcoin Trader is legit.

Conclusion from Bitcoin Trader Review

The information that Bitcoin Trader provide is a scam and you should most definitely not trust this software. Beware that this “unbelievable” trading system does not occur only on one domain, which means that the web address might differ. The name Bitcoin Trader and other information will be, however, always the same. If there was a system that would be ahead of the market by 0.01 second, all markets would almost instantly collapse. In the end, it’s a good thing that they promise such unbelievable results making it easier for people to recognize that Bitcoin Trader is not to be trusted.

Average rating of the Bitcoin Trader program

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43 Comments

Hi. Very interesting article. I did want to have a go and see if I could make small amounts regularly which I would pay into my bank but I’ve no idea where to start as I read the reviews and almost everything ends up being dodgy. Where do I start?

Hello Margaret,
It depends whether you would like to start trading binary options, forex, cryptos or CFDs in general.

Hi Michael, I’ve seen bitcoin trader advertising on facebook many times and have thought of opening an account with them.
Thanks to you I now know its a scam.
What’s your thoughts on a website called VIP-Crypto are they a good trading platform or is it a scam.

Hello Richard, can you please send me website’s address? So I can review it and tell you whether it is a scam or not.

Hi Micheal I’m pretty new to this I started with 250 Euro on kayafx they come across as very pushy to keep investing do you know if IQ option or 24 option are better to trade on thanks

Hello Darren,
Most scams are pushy, because they want to convince people before they change their mind. If this is the case for kayafx, I do not know. Both 24 option and IQ Option have quite a good reputation. But personally, I think that IQ Option has way better offer.

The website address for VIP-Cryto is https://vip-crypto.com
I have parted with £250 and was put onto a broker who told a few things about crypto trading.
The web site looked good and was able to trade on it and then after a week I was asked if I wanted to make some money big time by adding a further £5000 which would eventually make me £100,000. Obviously I refused and then its all gone quiet.
I have asked to cash out but still waiting for my £250 back.
I think this one is definitely a scam.

Educate yourself and start trading on your own. Other people don’t care about your money, they only care about their profits!

Can you please help me by telling if the company CryptoNash is real or a scam. My dad invested € 2500,00 in the last couple of days, through out the bitcoin trader ad.

Hello Ginny,
I do not know the company CryptoNash, so, unfortunately, I can not help you with this. But if they are connected to Bitcoin trader, please be super careful.

Just look at Bitcoin Trader landing page and you’ll see that specified user names, their photos and “I’m happy with your software bla-bla” reviews are just fakes (they use https://uinames.com/ to generate users info)

So it doesn’t seem to be a good to trust your money to a service that falsifies user’s data and reviews.

good day, I did not understand the iq option method, if you put a CALL and then a PUT this at the same time subtracts points even if the indicator is above or below your choice, if you can save me as it works since I was reviewing a bit and I did not understand, sometimes the amount went down and then went up or kept, I’m new to this and would like an orientation before making any deposit, and the price you ask for on deposit are dollars or Mexican pesos ??

Hello,
Please check out our introductory article How To Trade Binary Options to understand how binary trading works.

Hi Miachel
Do you know which crypto software for auto trading of BITCOIN/ETHEREUM, does I Q option use/operate?
I like to join I Q OPTION but only for bitcoin/ethereum auto trading and not manual trading.
I will appreciate your reply.
Thank you
Mohamed

Hello Mohamed,
IQ Option does not operate any auto trading software nor do they support any. If I were you, I would be very careful with using an auto trading software because most of them do not work.

Hello Michael,
I see Peter Jones of Dragons Den has just made a huge investment in Bitcoin Trader. Would you care to comment, and pass on your thoughts? Many thanks.

Hello,
From what I have read on the internet, that information is not true. There are even such rumors that BitcoinTrader stole their identities.

The first info I got on Bitcoin Trader was the news that in the UK it was started with two guys on the BBC show ‘Dragons Den’ showing Peter Jones and the others (very canny business people) investing and making money for one of them on 8 minutes. Peter Jones invested £2.5 million in it.

If it was a scam it wouldn’t be on the BBC and the Dragons Den team would have denounced it.

The above scam alert syas the pix are photo shopped and you can see that – no you can’t – there is no explanation of that at all! This lack of detail perhaps gives the impression that this site is a scam! I would like Bitcoin Trader to be a scam but I can find no proof of that here.

On the American site it says says there are no fees but on the UK one it says there is a 2% fee on profits. On the ‘How it works’ there is no info on how to withdraw your money/profits.

So there are indeed anomalies here.

Hello Dennis,
Please pay closer attention to photos provided in this article, there is a proof that they are stock images. So the traders are actually not real people who have experience with Bitcoin Trader. Gavin Duffy said. “It is a total scam. I contacted the BBC but trying to get these things down off websites, because it’s a paid for ad by the people behind this scam to give a sort of official veneer, then overnight people were kind enough to give me a heads up that it’s on the Guardian website as well.”. Fellow Dragon Eleanor McEvoy said: “It’s absolutely disgraceful that these things can happen… But what do you do when these things happen and god forbid anyone has invested any money in after seeing our names, god that would be terrible.” (Source). It is up to you make your mind to what to believe.

via AOL advert from trade.markets-trading.com I have just been ‘fooled into investing. Became suspicious when they phoned me and I then gave my details to take £250 and guy rang off very very quickly. Worried they will take more that £250 – is that the case of the scam?

Hello Iris,
What method did you use to charge your account?

I too read the Dragons Den story and ended up investing €250. I made the payment by debit card on their site. I received a call shortly after to set up a call for a broker to contact me tomorrow.
Having read previous messages, I now have no doubt that I have been scammed.

Hi Rob,
Can you tell us what happened in the end? Was it a scam?

Hi Tammy,
Shortly after I “invested” €250 l realised I had signed up to something completely different to the advert that had lured me in. I was really concerned I had been scammed so I requested a withdrawal of most of my deposit. They required me to fill in a form containing banking details, personal info etc which worried me even more. I received numerous calls daily from London, Zurich and other numbers which I terminated shortly after answering or ignored them totally. These calls are still ongoing and are ignored. Eventually my withdrawal request was processed and I have had most if my original deposit returned to me, thereby minimising my loss. I still get several calls a day which I ignore or terminate shortly after answering. I have received numerous emails demanding I answer the calls etc but have ignored these as well.
In short, I am convinced this is a scam. I have recovered as much of my investment as I can and have written off the balance.
My advice to you is to avoid this site and rather look into investing into a more credible and verifiable option .

This cryptonash look a scam. I see as well about dragons den invested for bitcoins and stupidly i did as well, did sign on and pay them 250 pounds, now they are asking from me 3 difference tipe of identity ( my passport details, my bank accont last bils and some another bill!).i fill only left to give them my door keys! Im a very upset. I did contact with my bank ready. They told me will try to help me. Thes cryptonash man name was daniel sanders, they were caling from Zurich .

Pity none of the Dragons have commented here – can it be they are unaware of this site?

Oh I’ve just googled ‘Peter Jones ‘ and got to his denial of his Bitcoin involvement – his legal team is on it he says.

It is vert strange that nothing of this has been on any BBC news item unless I missed it. What about ‘MoneyBox’?

I just to let people know I also saw Dragons Den advert for Bitcoin Trader sign up and invested 250 euros and got call from Daniel Sanders. He talked for a while the tried to get me to invest 1,500 euros, I informed him I didn’t have that kind of money. He tried to contact me over the next couple of weeks; I avoided his calls and emails as I was doing a bit of research on the site. He used different phone numbers eventually calling from an unknown phone number. I answered and told him what I had gathered from my searches but the strange thing was he was speaking with a completely different accent from the first time we spoke; it was obvious that he was a completely different person; I may be a pensioner but I am not senile. He had also promoted himself from an assigned advisor to being the owner of the company and became very agitated when I confronted him with what I believed concerning Cryptonash.

Does anyone have more info’s about http://www.cryptonash.com ? I have received a message on Skype with the link
swiss-methoden.com and by curiosity I clicked on and understand is a trading website so i signed up but the swiss-methoden signed me up to this http://www.cryptonash.com, after about 10 min I received a call from this women asking me to deposit a minimum of 250 then I told her I can’t risqué because for me 250 are important money then she said a minimum of 150 and she will assure me that I will see good progress in about a week time. Can I get some advice I do not know pretty much of this staff Ive only heard about bitcoin but thats all and need an insight! Thank you

Hello Cristina,
I do not know more information about cryptonash.com, but anyone who assures you that you will see good profits is lying to you, especially since you have no experience with trading. I have checked also the swiss-methoden system and it has most of the signs that scams have (on the main page there are many testimonials how wonderfully the system works, but not a single one is negative). That is really odd. You can also notice that they have in their terms and conditions “there is no guarantee that you will earn any money using the techniques and ideas in these materials. examples in these materials are not to be interpreted as a promise or guarantee of earnings.”. So they make you think by having the “honest” testimonials on the web that there are only people who profit from swiss-methoden, but as you can see, that is not true. I would be very careful with proceeding any payment, but it is your money. If you would be looking for honest and regulated companies where you can trade cryptocurrencies, let me know and I will try to point you out in the appropriate direction.

Hi I got sucked into the cryptonash scam and have made a proffit. I know they are blagging , so i pretended to be a business man and wanted to see if they could double my money as I didnt believe the software. They have deposited my original deposit and proffit. Im still 300 euros in profit. So im going to ask them to deposit that before I give them a larger deposit which im not. Play them at their own game.

Hi guys.
I got sucked into the bitcoin trader scam.
I saw the video and suddenly crptonash is ringing me.
I deposited 250 euro.
I have got that back and made some profit.
Now , I dont think there legit , they ring from different places and have english names and that does not add up.
I have spoke to the boss there as one of there workers openly said he didnt like what was going on after my pressing him about authenticity.
His picture and voice don’t add up and he was going to give me his personal phone number and email details.
Which never happened.
So they now want me to invest more money now they have proved to me they paid me back and some profit on that.
So I will now withdraw the other 300 euros profit I have to see if they will give it to me.
Im playing the role of a business man willing to put in only if they prove they can double my money and not before.
I can only win from this now.
But I will update you on the success of my last withdraw.
However Im more than aware this is a scam because of the way they jumped on the bitcointrader video scam with the dragons den rating it. They openly ommited to me they used this to get people in to trade with there money.
They must be pretty well organised working from an office bouncing numbers from around europe.
Perhaps they work in call centres?
Anyway if you’re unsure dont do it. Or dangle the carrot that you will invest more when you see you have made profit then just pullout.
They one thing they did say was that this is not going to make you a milliionaire which is about the only honest thing they have said.

Hi Cc,
I am also aware of the scam and am now testing the waters. 1st day so too early to tell.
How are you getting on? Did you withdraw your 300 Euros profit without any problems?

I first signed up with bitcoin trader and soon after I got a call from an account manager with Cryptonash, I have been working with them for 5 months now and honestly i was sceptical when i first started, but now I am sure they are a good company because of how we have been working together. I started with 350 euro and within a week i was told to put an additional 5000 euros, I never agreed to it as I am still very new to this trading thing. after two weeks i made a withdraw of 100 euro to test the system, i received it back in my account after 4 days. After several calls with the account manager I finally decide to go ahead and put my money into it (2500 euros) , you can imagine i was very nervous at that point, all I could think about was the money I had put and if I would see it back. In the past 5 months I’ve been able to withdraw 2764 euros. I will continue to work with them and see how it grows, the account manager has told me several times to put more funds into the account about opportunities in the market especially this season. I chose not to put anything because i saw these reviews and decided to get my money first and if that happens i will continue. So far I have taken 2864 euro from the account and I have requested another withdraw on thursday. I will keep you updated on what happens next, at this point i have taken all my money back and now will try to take profit. i hope they are good company because i have been scammed before and i do not want to be scammed again but so far they have been very nice to me and treated me with nothing but respect.

Hi FK,
How did you get on with withdrawing your money. Reluctantly I have started today, solely with the intention of withdrawing my original £250 as soon as I have that much profit. Once that has occurred, I will be at least satisfied that I haven’t lost any of my personal money. To date I have invested £250, with no intention to increase by way of deposit.
How are you doing? Are you earning more per day the higher the amount in balance?

I’m from the UK and found TradingBeasts after signing up with Bitcoin Trader automatic trading, but never mind, I knew the risk involved. I would like to share my experience to date and continue so that others can benefit or be wiser regarding my own involvement.
Probably against my better judgement, I charged my £250 to my Mastercard. Before I continue, this is £250 that I am prepared to lose!
Step 1: Bitcoin Trader leads me to “GCC Investing”. I filled out details but stopped before making payment. The next morning I received an phone call from Leeds. It wasn’t hard sell but the caller was definitely prepared to stay on the phone as long as it took! I asked many questions and of course the answers were positive, but like I said, I am not investing money I can’t afford to lose.
Step 2: After making payment of £250 I then received a call from a fund manager (for want of a better title), a Russian American. I became the feeling that he was hoping I would sign up for the personal management account. I repeated many times that I don’t have any more money to invest, just my £250 initial start up money. He didn’t try to hard sell me and accepted my decision. He said let’s talk in a few weeks time once I could see how the account is running. I repeated once again I will not invest any further funds, maybe only my profit funds.
He will now set my account up to run on their automatic trading system. I am now currently waiting for my account to start trading and I will keep this column informed what is happening, good or bad!
My intention is to withdraw my initial £250 investment as soon as it is realised!?
I can hear the oohs and aahs as I am writing this comment but like I said, it is £250 I am prepared to lose. If I was reading this comment from a fellow chat mate, I wouldn’t be thinking there will be a positive outcome. I might even label myself an idiot.
Let’s see, I will be totally open here good or bad.
I would also like to attempt the Free Demo Account of IQ to have a try myself at trading. We’ll see

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