Video: Arbitrage Opportunities for the Small Investor [Bitcoin] – Dr. Joseph Salerno

[LiteCoinGuy]

Arbitrage Opportunities for the Small Investor [Bitcoin] – Dr. Joseph Salerno

https://www.youtube.com/watch?v=mXlnh_-cmqc&feature=youtu.be

[CSH]

I've watched this video a few times. Dr. Salerno mentions that he buys/sells bitcoins on an exchange that stores Fiat currency (in my case, USD) as digital tokens. Does anyone know of a credible exchange that currently offers this?

I know that coinbase is working on offering a wallet that stores USD as tokens, so that you can buy and sell instantly, but this is not offered in my region (North East US - Connecticut).

The trouble I currently have with arbitrage, particularly through coinbase, is that it is not viable for me. Theoretically: If I pay attention to the news and I read that an exchange got hacked (i.e. cryptsy) I know that this will cause panic, and as fear grips the market people will sell and the price of bitcoin will drop. I may want to sell my Bitcoin, temporarily, to minimize any loses, and then buy back bitcoin at a cheaper price the next day. The problem with Coinbase is that with my current limitations, if I sell my Bitcoins, I have to wait 5 days for the money to be deposited into my bank. During this time the money is in "Limbo," so to speak, and I cannot use the funds to buy back coins at a cheaper price the following day. Furthermore, there are buy limits placed on my bank account, so it may take me a week or more to buy back the coins that I sold even if I keep additional funds available in the bank. During this time the market shifts drastically, and in order to be successful in arbitrage, you need access to instant buy & sale.

Storing FIAT as digital tokens seems like the only way to do this. I know that there is an inherent risk in doing so, but it would only be temporary until the market adjusts. Can anyone recommend a reputable exchange that can accommodate this in my region (Connecticut, USA)?

[iFixBTCmemoryIssues]

if I sell my Bitcoins, I have to wait 5 days for the money to be deposited into my bank. During this time the money is in "Limbo," so to speak,

5 days? That's insane!

Can't you just hire traders on localbitcoins.com to complete your deals for you?

[CSH]

5 days? That's insane!

Can't you just hire traders on localbitcoins.com to complete your deals for you?

It may be because of the weekend. I think it is typically 3 business days. Either way that is still an exorbitant amount of time to wait considering Bitcoins still trade during the weekend, and a lot can happen in 3 days. It essentially destroys arbitrage opportunity because the key to generating a positive rate of return through arbitrage is quick cycle times and available capital.

[kingscrown]

I've watched this video a few times. Dr. Salerno mentions that he buys/sells bitcoins on an exchange that stores Fiat currency (in my case, USD) as digital tokens. Does anyone know of a credible exchange that currently offers this?

I know that coinbase is working on offering a wallet that stores USD as tokens, so that you can buy and sell instantly, but this is not offered in my region (North East US - Connecticut).

The trouble I currently have with arbitrage, particularly through coinbase, is that it is not viable for me. Theoretically: If I pay attention to the news and I read that an exchange got hacked (i.e. cryptsy) I know that this will cause panic, and as fear grips the market people will sell and the price of bitcoin will drop. I may want to sell my Bitcoin, temporarily, to minimize any loses, and then buy back bitcoin at a cheaper price the next day. The problem with Coinbase is that with my current limitations, if I sell my Bitcoins, I have to wait 5 days for the money to be deposited into my bank. During this time the money is in "Limbo," so to speak, and I cannot use the funds to buy back coins at a cheaper price the following day. Furthermore, there are buy limits placed on my bank account, so it may take me a week or more to buy back the coins that I sold even if I keep additional funds available in the bank. During this time the market shifts drastically, and in order to be successful in arbitrage, you need access to instant buy & sale.

Storing FIAT as digital tokens seems like the only way to do this. I know that there is an inherent risk in doing so, but it would only be temporary until the market adjusts. Can anyone recommend a reputable exchange that can accommodate this in my region (Connecticut, USA)?

There is one that even lets you exchange BTC to Paypal. OpenLedger - im writing article on it literally now.

[ronnieb]

Arbitrage Opportunities for the Small Investor [Bitcoin] – Dr. Joseph Salerno

I had watched this video a while back, but I felt like there was still too much friction to really make an arbitrage headway. I did however sign up for CoinCube and that actually re-piqued my interest to look into the arbitrage angle again. Problem is, I just don't have the time. Would be nice if someone put something together, a pool of sorts, and us "Bitcoiners" with less time could pitch in for a fee.

[iFixBTCmemoryIssues]

5 days? That's insane!

Can't you just hire traders on localbitcoins.com to complete your deals for you?

It may be because of the weekend. I think it is typically 3 business days. Either way that is still an exorbitant amount of time to wait considering Bitcoins still trade during the weekend, and a lot can happen in 3 days. It essentially destroys arbitrage opportunity because the key to generating a positive rate of return through arbitrage is quick cycle times and available capital.

It should be 0 days and under 60 minutes, that is acceptable!