How to Profit from Bitcoin Arbitrage

John is a merchant. He was roaming around his town. He notices in one part of the town the price for an orange is $1.70. In his part of the town, he could buy the same for $1. He decided to take advantage of this price difference. He bought ten oranges from his area and sold them on the other. He made $7 in profit ($0.70*10 = $7).

This is the same case with bitcoin exchanges. In some exchanges, you find bitcoin cheaper. This happens because cryptocurrency market is new and inefficient.

You can profit by buying bitcoin for cheap in one exchange and selling it on the other for a higher price. This is true with other cryptocurrencies also.

How do I track the price differences?

Tracking these price manually is difficult. You can write a program to track it for you. Thankfully, while surfing through medium, I found a solution to track these on spreadsheets(Thank you, John Young). You can start tracking by making a copy of this spreadsheet. Here is a screenshot of the live spreadsheet.

Credits : SpreadstreetHow do I use this?

It’s simple. Make a copy of John’s worksheet (Simple Cryptocurrency Arbitrage Spreadsheet). Install this Add-in on your chrome browser. Finally, you need to activate the add-in.

On the tool bar click on Add-ons -> Spreadstreet -> Help -> View in store -> Manage -> Make sure “Use in worksheet” is checked

That’s it. Make sure you are on the summary tab of the worksheet. You can start tracking. If you face issues, reload the sheet. You can read the post written by John here.