Arbitrage on Luno?

Salmank

Well-Known Member
Joined
Jun 27, 2016
Messages
366
#1
Hi,

Is the way and tricks to buy at a lower price and sell at a slightly higher price everyday on Luno and make profit? So daily small profits?

If there is, how do you protect yourself from loses?
 

acidrain

Expert Member
Joined
Jan 7, 2007
Messages
4,723
#2
What you are talking about is standard trading. There is no trick to it other than doing trade analysis.

Arbitrage is when there is a price difference across 2 different exchanges. There is a likely chance to arbitrage with Luno's premium, but you will need to find an international exchange that will accept credit card. Buy BTC there, tx and sell on luno and withdraw cash back into your account. Rinse and repeat. Just be careful of forex charges.
 

BitcoinZAR

Active Member
Joined
Feb 11, 2016
Messages
66
#3
Yes, arbitrage trading is possible decent profit if the price difference is enough. If you account for the fees on each exchange into the equation, and there is still a decent price difference then that is just free money waiting to be claimed. If you get good at it, and have your formulas worked out, it can be quick and easy to do over and over while the opportunity and funds exist.
This post from when bitcoin was around R8k might be useful to you: https://www.bitcoinzar.co.za/bitcoin-arbitrage-trading/
Things have changed a bit, but if you do it right, you can definitely make profits.
 

Snyper564

Expert Member
Joined
Oct 1, 2008
Messages
3,133
#5
Guys just remember that BTC transfers are not instant. can sometimes take a few days to reflect. what does that mean a swing in the market can destroy any arbitrage... some cryptos move way faster for example XRP or ETH but BTC is slow as a snail....
 

Cube3

Expert Member
Joined
Jun 3, 2008
Messages
1,203
#6
I think that is called scalping, anyways, make sure you're the maker on Luno, vs the taker.... or you get hit with fees.
 

BitcoinZAR

Active Member
Joined
Feb 11, 2016
Messages
66
#7
Guys just remember that BTC transfers are not instant. can sometimes take a few days to reflect. what does that mean a swing in the market can destroy any arbitrage... some cryptos move way faster for example XRP or ETH but BTC is slow as a snail....
You doing arbitrage wrong if you transferring between exchanges to make the trade.
When doing it properly, there is no time delay as you already have funds on both exchanges.
The only time it takes is to time taken to switch browser windows between pressing the buy and sell button.
 

Snyper564

Expert Member
Joined
Oct 1, 2008
Messages
3,133
#8
You doing arbitrage wrong if you transferring between exchanges to make the trade.
When doing it properly, there is no time delay as you already have funds on both exchanges.
The only time it takes is to time taken to switch browser windows between pressing the buy and sell button.
Noted, thanks. Don't care much for crypto at the moment tho. Made my profits, back to my day job :)
 

Bobby_B

New Member
Joined
May 30, 2019
Messages
5
#9
Please tell me if this is accurate:

Buy R4000 with my credit card on Binance
3.5% deposit fee
thus R3860 worth of BTC on Binance
Transfer to Luno
Sell at the Luno rate which is +/- 5% higher
Netted a profit of +/- R53 not taking bank fees into account

Worth the trouble?
 

Tman*

Expert Member
Joined
Jul 18, 2012
Messages
2,344
#10
Please tell me if this is accurate:

Buy R4000 with my credit card on Binance
3.5% deposit fee
thus R3860 worth of BTC on Binance
Transfer to Luno
Sell at the Luno rate which is +/- 5% higher
Netted a profit of +/- R53 not taking bank fees into account

Worth the trouble?
1% return, with some risk associated, I cant see how this is worth it.
 

Salmank

Well-Known Member
Joined
Jun 27, 2016
Messages
366
#11
Please tell me if this is accurate:

Buy R4000 with my credit card on Binance
3.5% deposit fee
thus R3860 worth of BTC on Binance
Transfer to Luno
Sell at the Luno rate which is +/- 5% higher
Netted a profit of +/- R53 not taking bank fees into account

Worth the trouble?
Work on 7 % on Binance. Cause their Bitcoin price is 2% higher than other places, then 3% cc fees, then you bank will charge your ZAR-US$ conversion.

Then there is a slight percentage to send from Binance to Luno. So with R4000, by the time it reaches Luno, it will be R3700 worth of Bitcoin. By then you will be at a slight loss, so you will have to wait for the price to go up to make profit.
 
Top