- We saw a huge market fall in crypto market this month than ever before. I saw that the rates of bitcoin was trading at 24 lakh in foreign exchanges and in our country it is at 29 lakh.So we can arbitrage.
- My question is can we still arbitrage?
- And how come is this possible in crypto markets with so much differentiation?
Ritwikpandey07Advanced
Cryptocurrency
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Hey,
Crypto Market are not all regulated it just like sabzi mandi in India, where same potato is sold at different rate in different part of country
Similarly, crypto currency is sold across 1000 exchange around the world n every exchange has its own supply, demand n liquidity n hence different prices
Yes there is an arbitrage opportunity for sure but exploiting the same would be difficult because of reasons below
-exchange rate conversion which involves cost, for example u will have to pay bank 1% to get dollar
-each exchange have their restrictions on withdrawal as well
-exterme volatility
-liquidity issues
Having said that people are making money exploiting the opportunity however several factors needs to be considered n it is very risky