Introducing:
The simplest question that comes to mind to everyone, even a person far from trading: "Why are all those who trade crypto currencies have not yet become dollar millionaires"? After all, everything looks very simple. On one exchange, they sold crypto currency or tokens, bought another one, waited for price convergence and fixed profit.
Absence of liquidity on the exchanges
Impossibility to quickly buy an asset on one of the crypto-instruments, and on the other to sell it with a large volume. Because of this, there are practically no large players on the market, let alone funds that move prices in the stock market.
If any major player (seeing a difference in price between exchanges of 10%), try on one of them to sell the asset at $ 10 million, and the other to buy for the same amount, he will get a monstrous slip, which as a result, in most cases will not earn 10% in arbitration, but on the contrary lose 10-50%
Problems with the introduction / withdrawal of large amounts on exchanges
In connection with the toughening of the fight against money laundering, the introduction of large amounts on exchanges becomes a problem for the client, the bank and the stock exchange itself. And often drags on for weeks and months. And when it comes to withdrawing money, things get even harder and longer.
As a result, large players not only can not find liquidity (p1.), They also can not quickly dispose of their money, introducing and withdrawing them to various exchanges for arbitrage transactions.
There is no understanding of how to technically conduct arbitration
As a result of problems with clauses 1 and 2, there are practically no institutional investors on the market. But in large numbers there is an audience, with insufficient financial education. For most people, it is a problem how to implement arbitration by hand, and to create a robot that can monitor price divergence and conduct transactions.
Insufficient infrastructure
Most terminals of crypto-exchange exchanges are in the Stone Age, in comparison with technical progress. For example, the charts of each trading pair can be loaded for a few seconds. And when you click on the "buy" or "sell" button, the transaction may hang for another few seconds. Constantly changing prices on several stock exchanges, they make you instantly make calculations "by eye," often making mistakes.
As a result, it is extremely difficult for a trader to obtain a benchmark result, which will be equal to the price split between the two exchanges.
What do you guys think about a platform like this ?? Will you be willing to use it?
