How benefit Arbitrage Crypto Trading compared to GPU mining?
I had been started GPU mining 3 months ago. I started with 6 GPUs of NVIDIA 1070 mining rig and put in my extra tiny space at home. As expected, it took me a while to get those 6 GPUs as they are really out of stocks. The total cost of getting the mining rigs is about $5,000 USD. I started to mine with Nicehash and since the difficulty is rising and we’re competing the hashrate each other, the daily returns is about 0.001 BTC. In average i mined 0.03 BTC per month before the electricity cost, which is about 25% of the output.
This is my simple calculation of my ROI (Returns on Investment). In short, it takes me 21 months for ROI
On the other hands, I’m comparing the returns on arbitrage trading by using arbitrage trading bot that do the same thing as mining, where the bot run on the same mining rig 24/7. I have been running for a week and so far the returns is about USD 250, which is equivalent to 0.03 BTC. Please note I’m using 1 BTC and 5 BCH coins in two separate exchanges to capture the simultaneous arbitrage
My intention of GPU mining is to collect more bitcoins and hope for the appreciation one day. At the same time, I tend to believe arbitrage trading help me to increase my coins with my existing bitcoins and altcoins that I keep as long term investment. I don’t want to take higher risk in technical analysis trading but I believe arbitrage opportunities are every where in crypto currencies world and the risk is minimal.
Arbitrage trading is not easy? Yes, it is not easy if you have to sit in front of the computer to perform buy and sell 24 hours a day. No, it will be easy if there is a bot bot to do the job for you.
I’ve been running Arbitragewin for the past 7 days from 5/23 to 5/30 in my local machine. BTW, I have a mining rigs running 24/7 on crypto coins. At the same time, I installed Arbitragewin in the same machine to fully utilize the mining rigs.
What is the result? Total of JPY14,635. Amazing!
As you see, the profit mainly from MONA-BTC and BCH-BTC trading pairs. So, how many arbitrage transactions had been taken place in total?
- MonaBTC: No of trades transacted : 45
- BCHBTC: No of trades transacted: 26
The average spread captured about 1%. There is no way I can sit in front of the screen to capture this manually. That’s the power of automation in the new world!
What do you say? Want to learn how to arbitrage? Feel free to leave me a message on how you think about it.
Today’s BCHBTC Spreads
BCH is one of the most volatile trading pairs in most of the exchange ? Again. I was able to captured few arbitrage opportunities using ArbitrageWin. ArbitrageWin is the arbitrage trading bot that run 24 hours in my mining machine. It captures 9 transactions today with average of 1.00% spreads.
Here are couples of example:
2018-05-06 12:55 JST
Market Making : Bitbank Sell 0.1763
Counter Quote : Bittrex Ask 0.1786
Spreads : -0.0023
Available Volume : 9.963
Target Volume : 0.2
Trading Cost : -95.14
Expected PnL (Yen) : 394.95
Expected PnL (%) : 1.04451%
2018-05-06 8:53 JST
Market Making : Bitbank Sell 0.1799
Counter Quote : Bittrex Ask 0.1777
Spreads : -0.0022
Available Volume : 11.125
Target Volume : 0.2
Trading Cost : -94.66
Expected PnL (Yen) : 374.12
Expected PnL (%) : 0.98195%
Today’s MonaBtc Spreads
So, what are some of the spreads I’ve seen today? There was a 2.92% price difference between the exchange Bitbank and the exchange Bittrex. In particular, I bought monabtc at 0.0005121 btc and sell it in 0.0005286 in Bittrex to captured 2.92% profit. Obviously, this isn’t much — but consider that this is just one trade, and you might be making hundreds or even thousands of these trades a day. The profits add up. There are more than 10 times of arbitrage opportunities today. Here are couples of example:
2018-05-06 16:23 JST
Market Making : Bitbank Sell 0.0005209
Counter Quote : Bittrex Ask 0.0005287
Spreads : -0.0000078
Available Volume : 69
Target Volume : 50
Trading Cost : -69.38
Expected PnL (Yen) : 346.17
Expected PnL (%) : 1.23812%
2018-05-06 18:17 JST
Market Making : Bitbank Sell 0.0005286
Counter Quote : Bittrex Ask 0.0005121
Spreads : -0.0000165
Available Volume : 7945.031
Target Volume : 50
Trading Cost : -68.21
Expected PnL (Yen) : 810.85
Expected PnL (%) : 2.92491%