Trading from CEX to DEX due to higher prices

[target]

Moving from exchanges to trade in another exchange due to higher price and profit from it is what they call arbitrage as far as I know. Trading your BTC to dex for higher price however is still not profitable because of high withdrawal fee.

Any suggesrions which DEX you have tried this? I saw one dex has BTC price of more than 70k already but its fee is also high like 0.0002 so I'm doubting if I could do it regularly.

[Charles-Tim]

You can not trade bitcoin on the web3 exchanges which are centralized but called decentralized. They are not decentralized.

Most decentralized exchanges which you can trade bitcoin are decentralized P2P exchanges. Some can give you your private key. Example is Bisq.network.

The price difference you see on those P2P exchanges are in a way it will only favour people that have ads. You can have ads and if the trading fee is not much, you can make money on P2P exchanges.

It is business. I will advice you to consider both centralized and decentralized exchanges and look for ways you can make money from it. If you check very well, you will see ways.

[MrSpasybo]

Moving from exchanges to trade in another exchange due to higher price and profit from it is what they call arbitrage as far as I know. Trading your BTC to dex for higher price however is still not profitable because of high withdrawal fee.

Any suggesrions which DEX you have tried this? I saw one dex has BTC price of more than 70k already but its fee is also high like 0.0002 so I'm doubting if I could do it regularly.

I've never traded BTC on a DEX. In fact, I've never even connected my BTC address to any DEX on the market because I don't trust them. At the same time, I think BTC's liquidity is so large that the price difference is insignificant and not worth worrying about. Sometimes, transaction fees are already factored into BTC price, which is why we see such high BTC price on DEXs.

Perhaps because I only DCA instead of constantly trading to optimize profits, the price difference and transaction fees have never been a big issue. I hope other traders will share their experiences so we can make the best choice when we want to sell BTC at a high price!

[bitterguy28]

Moving from exchanges to trade in another exchange due to higher price and profit from it is what they call arbitrage as far as I know. Trading your BTC to dex for higher price however is still not profitable because of high withdrawal fee.

at some point you need to think whether that withdrawal fee is worth it or not if the difference in price between two exchanges is not that high i wouldn’t recommend transferring your funds anymore as the fees will just cut off a huge part of it

Any suggesrions which DEX you have tried this? I saw one dex has BTC price of more than 70k already but its fee is also high like 0.0002 so I'm doubting if I could do it regularly.

aside from the price i think you should also consider the liquidity in that exchange you would want to be able to make transactions smoothly with as low of a fee as possible

[bee]

Any suggesrions which DEX you have tried this? I saw one dex has BTC price of more than 70k already but its fee is also high like 0.0002 so I'm doubting if I could do it regularly.

Afaik, DEX prices (not AMM) are set based on market price + slippage percentage (including network fees) + service fees if any. So the price can be up to 2%(maybe more) higher or lower depending on your position as a buyer or seller. That is actually a significant price difference compared to the market price if we exchange a large amount. However, users can consider it a premium price for DEX services that offer a certain level of privacy that will not be obtained on CEX.

I've never traded BTC on a DEX. In fact, I've never even connected my BTC address to any DEX on the market because I don't trust them.

If we talk in the context of DEXes of real Bitcoin, they usually does not ask users to connect their address, but rather provides a new address that uses the multisig protocol as a transaction intermediary.

[yhiaali3]

As far as I know there are no decentralized Bitcoin exchanges, I mean there is no DEX that allows you to connect your Bitcoin wallet, most likely they will allow you to create a new wallet or you can trade wrapped Bitcoin (WBTC) on another network like Ethereum or Binance.

The best way to trade Bitcoin decentralized is via P2P, but you can arbitrage Altcoin profitably on DEXs where there are price differences between exchanges, you need to choose a coin with low fees to achieve the highest amount of profit.

[Captain Corporate]

There are a lot of DEX out there who have this chance, they build bots around it. You need to remember, you need just two things, enough volume in that pair, and be able to trade in that place with the money you have, like have that approval on your wallet. That means, most of the time these bots just spend some money and make that profit and they are just crashing the price down. Don't think of BTC terms, it would be near impossible to find BTC arbitrage chance, we are talking about stuff that are not even in the top 100, those are the ones that are making the profit for arbitrage people.

[Cech1337]

Moving from exchanges to trade in another exchange due to higher price and profit from it is what they call arbitrage as far as I know. Trading your BTC to dex for higher price however is still not profitable because of high withdrawal fee.

Any suggesrions which DEX you have tried this? I saw one dex has BTC price of more than 70k already but its fee is also high like 0.0002 so I'm doubting if I could do it regularly.

You're right—what you're describing is indeed arbitrage, where you exploit price differences between exchanges. However, high withdrawal fees can significantly impact your profits, so it's crucial to consider these costs carefully.

Suggestions for DEX Trading:

Evaluate Fees: Check the fee structure of various DEXs. Even if you find a DEX with higher BTC prices, the withdrawal fees might offset any potential gains. Look for platforms with competitive fee structures or consider using stablecoins for transactions to avoid high BTC withdrawal fees.

Transaction Speed and Liquidity: Ensure that the DEX has sufficient liquidity to handle your trades without causing significant slippage. High liquidity helps maintain the price stability during your transactions.

Consider Layer-2 Solutions: Some DEXs offer Layer-2 solutions that can reduce transaction fees and speed up transfers. Platforms like Arbitrum or Optimism might offer lower fees and faster transactions.

Fee Discounts and Promotions: Some exchanges offer fee discounts or promotions for certain trading volumes or using their native tokens. Check if you can benefit from any such offers.

Alternative Strategies: If high withdrawal fees are a major concern, you might explore other arbitrage strategies, such as those involving stablecoins or different pairs that might have less impact from withdrawal fees.

Track Your Costs: Regularly track all associated costs, including trading fees, withdrawal fees, and potential slippage, to ensure that the arbitrage opportunity remains profitable.

I haven’t personally used DEXs for arbitrage, but some popular ones like Uniswap, Sushiswap, and PancakeSwap are known for their liquidity and might offer competitive rates. Always do thorough research and test with smaller amounts first to gauge profitability and fee structures.

[target]

Moving from exchanges to trade in another exchange due to higher price and profit from it is what they call arbitrage as far as I know. Trading your BTC to dex for higher price however is still not profitable because of high withdrawal fee.

at some point you need to think whether that withdrawal fee is worth it or not if the difference in price between two exchanges is not that high i wouldn’t recommend transferring your funds anymore as the fees will just cut off a huge part of it

Any suggesrions which DEX you have tried this? I saw one dex has BTC price of more than 70k already but its fee is also high like 0.0002 so I'm doubting if I could do it regularly.

aside from the price i think you should also consider the liquidity in that exchange you would want to be able to make transactions smoothly with as low of a fee as possible

This is also what I encounter whe selling in the DEX. Although the price is higher than the usual CEX, its volume will not be enough for traders. I'm there are others in the exchanges doing the same thing patiently waiting new opportunities in the orderbook.

Low liquidity is the usual problem in the dex. Haven't tried Bisq, is there more volume?
They don't show their market.

[Hamza2424]

Moving from exchanges to trade in another exchange due to higher price and profit from it is what they call arbitrage as far as I know. Trading your BTC to dex for higher price however is still not profitable because of high withdrawal fee.

Any suggesrions which DEX you have tried this? I saw one dex has BTC price of more than 70k already but its fee is also high like 0.0002 so I'm doubting if I could do it regularly.

I've never done arbitrage trading in my journey, but i do have an idea about it, TBH i dont think that with much higher liquidity in the market arbitrage trading is possible, especially with the Bitcoin and ETH, if there are some major price differences between different platform it involves risk as well, such as trap for arbitrage users, on the reputed platform you'll find this opportunity as rare as "Kyawthuite".

[target]

Moving from exchanges to trade in another exchange due to higher price and profit from it is what they call arbitrage as far as I know. Trading your BTC to dex for higher price however is still not profitable because of high withdrawal fee.

Any suggesrions which DEX you have tried this? I saw one dex has BTC price of more than 70k already but its fee is also high like 0.0002 so I'm doubting if I could do it regularly.

I've never done arbitrage trading in my journey, but i do have an idea about it, TBH i dont think that with much higher liquidity in the market arbitrage trading is possible, especially with the Bitcoin and ETH, if there are some major price differences between different platform it involves risk as well, such as trap for arbitrage users, on the reputed platform you'll find this opportunity as rare as "Kyawthuite".

It may not be as rare as Kyawthuite. Inhave to google this to learn is a rare rock with simple combination of elements. Arbitrage trading is being taught I think not just in crypto so they could be doing this in different market.

I am not an expert to this but I was just trying to learn more of it as well. I did learn that I could be a victim of that trap you are saying because now I cant sell for higher price. This has turned out to be noob mistake.

[Hamza2424]

It may not be as rare as Kyawthuite. Inhave to google this to learn is a rare rock with simple combination of elements. Arbitrage trading is being taught I think not just in crypto so they could be doing this in different market.

I am not an expert to this but I was just trying to learn more of it as well. I did learn that I could be a victim of that trap you are saying because now I cant sell for higher price. This has turned out to be noob mistake.

Hmm whether a noob's mistake or not, I'm not sure about that, and I do acknowledge that arbitrage trading is not only a trading strategy adopted in the crypto market, but I'm not sure from where people learn haha I'm trying to ask about the course, tutorial. TBH Arbitrage trading is the most practiced trading strategy in the offline market with different product prices.

[taufik123]

Hmm whether a noob's mistake or not, I'm not sure about that, and I do acknowledge that arbitrage trading is not only a trading strategy adopted in the crypto market, but I'm not sure from where people learn haha I'm trying to ask about the course, tutorial. TBH Arbitrage trading is the most practiced trading strategy in the offline market with different product prices.

In the past I also used to do Arbitrage trades from CEX to DEX or vice versa, but it was really done quickly when looking at the price difference and using a low-fee network like BSC. But now it has never been done again because it will not be effective with great time and cost.

Now many are using their own bots to execute the price of the coin that is experiencing a difference and this is done automatically, so doing it manually will not be maximum.

[bayu7adi]

Several times I checked to compare BTC prices between exchanges to be able to do arbitrage, but it was really difficult because there were many obstacles that made us away from profit... one of them was transaction fees and withdrawal fees... remember, that BTC liquidity is very large, there are so many people who monitor prices and also take the opportunity to do arbitrage even when the price is bleeding like now....

My advice regarding arbitrage is, monitor coins with low volume and have cheaper transaction fees... it's okay to need days of research, when you find the right coin, it really makes free money for you in a few moments.

[bounceback]

In the past I also used to do Arbitrage trades from CEX to DEX or vice versa, but it was really done quickly when looking at the price difference and using a low-fee network like BSC. But now it has never been done again because it will not be effective with great time and cost.

Now many are using their own bots to execute the price of the coin that is experiencing a difference and this is done automatically, so doing it manually will not be maximum.

Arbitrage most profitable earn when arbitrage BSC coins buy at DEX and sell it later on CEX exchange, last two years ago its my trading way and earn more than 100$ to 300$ every day with capital around $200 each time entry. Using token or coins with BSC network have lower fees and we can recovery although got small profitable after selling at CEX exchange usually take few fees for withdrawing and swap BSC coins taken under 0.5$ for fees.
But difference with other network actually ETH taken much fees and we need get profitable above $50 every arbitrage coins to recovery how much fees spending from swap until send ERC coins.