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15 Best Tips & Tricks to Arbitrage Bitcoin & Cryptocurrency

Posted on by in Cryptocurrency

Bitcoin or Cryptocurrency arbitrage is all about buying bitcoins on a low price and selling it on a higher price on an exchange. You may refer this process as a Bitcoin or Cryptocurrency Arbitrage. However, not all the things are rosy with this mechanism.


It could become a risky business when it comes to performing Cryptocurrency as per your demands. In more simple words, you tend to grab a falling knife. The whole theory of this arbitrage revolves around buying at a lower price in one place and selling at a higher price on the other place.

After conducting different transactions, you become optimistic to certain degree. This happens because the amount of Bitcoin starts increasing in our wallet.

When you perform your last transaction in which you sell your Bitcoin at the lowest rate, a sudden bounce spoils all your efforts in a moment. It means a declining trend takes place that lasts for longer period. As a result, users make mistakes during the process and try to compensate for their losses and lose their collected income.

How to do Arbitrage without taking too many Risks


Again, you have to go through various Bitcoin or Cryptocurrencies exchange markets and explore the differences among prices. Thus, you are able to pay for Bitcoins initially through dollars or any other currency then you withdraw Bitcoins later on.

Still, you have to protect yourself online as online snoopers target those Cryptocurrency users who do not take measures to mask their identity. In this scenario, role of online privacy tools like VPNs comes in handy.

They allow you to safeguard your actual IP addresses with the help of VPN servers’ IP addresses. By doing so, you can perform Cryptocurrency arbitrage anonymously from anywhere. Keep in your mind that a dedicated IP VPN keeps yourself protect and away from all sorts of spying and hacking hassles.

When you avail such VPN service from a premium online privacy provider, you obtain special IP address. This unique IP address enables you to conduct all your financial transactions like Cryptocurrency arbitrage and others securely.

15 Most Wanted Tips & Tricks for Bitcoin Arbitrage


Once you have gone through the said process, you can apply these 15 much-needed tricks to make your Bitcoin arbitrage highly profitable.

1. Decide if You Wish to Trade or Buy


You should decide if you want to have own units of cryptocurrency or to trade on Cryptocurrency pricing. If you opt to avail a unit of cryptocurrency, you will need to pay the full amount of the asset. On the other hand, trading allows you to invest small proportion of your whole position size. This way, you can take a huge benefit as you are allowed to gain maximum exposure through your investment amount.

2. Create Your Account

Before conducting a Bitcoin or Cryptocurrency arbitrage process, you have to create an exchange account. Hence, you can store your Cryptocurrency in a digital wallet. In case you want to trade your cryptocurrency, a brokerage account will do the job for you.

3. Decide Which Currencies You Want to Sell or Buy


It is not possible for you by any means to trade all 1500 cryptocurrencies simultaneously. Still, you can trade all key currencies like Bitcoin, Ethereum, Litecoin and others those are included from time to time. Thus, you can become an expert since you are able to trade in specific currency after finding out the pros and cons of your desired cryptocurrency.

4. Finalize Your Trading Strategy

You have to keep an eye on your trading tactics. This is because the cryptocurrency pricing depends on a list of significant factors. You can consider these attributes in the form of government regulations, media coverage, and fate of US dollars and so on.

5. Apply Your Tactics by Placing Trades

After deciding about your trading strategy, it is time to decide about your trade exit point. There is no denying cryptocurrencies are full of risks. Therefore, you have to withdraw from Bitcoin buying and selling once you have attained your objective you have incurred a maximum loss.

6. Use Trusted Exchanges Only


There are numerous unreliable cryptocurrency exchanges working in the market. Therefore, you must perform a bulk of research to avoid dealing with fake cryptocurrency exchange. After doing a reasonable research, you can deal with the reputable cryptocurrency exchanges quite easily.

7. Sell the Related Products or Services

If you want to earn Bitcoin or other cryptocurrencies, you can offer various products or services through BitcoinTalk services thread. You can develop a website, market or promote products online, become an Escrow agent for Bitcoin transactions to indulge yourself in cryptocurrency arbitrage phenomenon.

8. Explore New Coin Listings


You will have to focus on different crypto forums and communities to make your Bitcoin arbitrage process meaningful. Moreover, you should explore new sites those announce about the new coins being included to an exchange. If a new coin is added to the exchange, you can get a bigger price differential because the coin has a limited demand on that site.

9. Study Hedging Strategies

You should read different hedging strategies, as it will enable you to secure yourself from unexpected market moves that may hamper you financially.

10. Diversify Yourself


Do not put all your eggs in one market. If you have read this famous portfolio management proverb, you can minimize your loss to certain extent. It is better to invest in more than one exchange or in one particular currency.

11. Lend Bitcoins


You can increase your Bitcoin or other cryptocurrency wallet amount through lending Bitcoins or cryptocurrencies. You can easily find platforms that allow you to interact with cryptocurrency borrowers. By doing so, you can make income on your cryptocurrencies risk-free.

12. Micro Earnings

Micro earning is another way of buying and selling Bitcoins profitably. It would not be wrong to say it is one of the most used methods when it comes to perform Bitcoin arbitrage procedure hassle-free. However, you will have to put lot of time and efforts to reap the rewards accordingly.

13. Signature Campaigns

You can take huge advantage by starting signature campaigns that help you in trading cryptocurrencies without any fuss. In more simple words, you can use your BitcoinTalk signature to market the product. You can make earning after writing each post.

14. Write about Bitcoins or Cryptocurrencies


There is no harm if you become cryptocurrency writer. In fact, it is one of the easiest ways of buying Bitcoins straightaway. The cryptocurrency industry is evolving at a rapid pace and everyday new sites are popping up over the internet. These sites require seasoned writers, as they need to publish dozens of blogs on weekly basis.

15. Affiliate Programs

Affiliate programs, Yes; you have read it correctly. This is one of the most unnoticed methods to perform Bitcoin or cryptocurrency arbitrage appropriately. Affiliates are those individuals who promote your business free but take commission when they manage to provide premium customers for your business.

Wrapping Things Up

Many people assume performing Bitcoin or cryptocurrency arbitrage is not a big deal. But in reality, it takes lot of time, efforts and risks in order to get success in the end. However, cryptocurrency is an emerging new market grabbing the attention of people from all around the world.

Where this market will end up is anybody’s guess since the market is keep changing at an enormous pace at present.

Author: Usman
A business school grad specializing in marketing, Usman found his love for writing during studies. Usman now pursues a career as a digital privacy & security advocate for VPNRanks working as a blogger. He loves reading about sci-fi & technology while cricket is his game of choice.

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