Review Is BItcoin Arbitrage Scam or Should I Invest

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Bitcoin Arbitrage Review: Scam or Paying? claims it could make you 10%profits from BTC after every eight hours. How true is this? Is it Legit? You may have come across many systems on the internet promising you quick fortunes, the truth is that majority of them turn out to be scams. In this review of Bitcoin Arbitrage, we provide you information based on our investigations and user experiences to help guide you make the proper decision.

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What Is Bitcoin Arbitrage

The Bitcoin Arbitrage allegedly offer you the fastest and the most legit way to successfully accumulate your BTC by getting you 10% profit every 8 hours. They claim their sophisticated technology does all the hard work, making sure that every customer is 100% satisfied and that every trade goes through smoothly.

How Does Bitcoin Arbitrage Work

The first step is to visit their Investment page. Their system will automatically generate you a BTC deposit address which you can use for making a Deposit. Your Deposit will appear in the transactions table after 1 confirmation from the network. After 8 hours you will automatically receive your Deposit amount + 10% Profit to the BTC address from which you have made the Deposit. They claim they are the most trusted Crypto arbitrage trading / investing platform. The question now is ‘Is legit? Scam Review: Disturbing Things Found

Most of this scam quick-profit investment schemes are HYIPs. What is a HYIP? It is a just a type of ponzi scheme. Initial investors only get paid when new people sign up and invest, what this means is that you are under pressure to bring in new investors so that you will get paid. As soon as the amount of new investor drops, the owners do away with the money invested, and the site is closed down since there is no longer enough money to pay initial investors. Those that benefit most times are the first investors. The system is not sustainable because it will surely shut down abruptly leaving your money trapped in the hands of the scammers that set it up initially.

Most of them provide a registration certificate and so-called evidence of payments. Don’t be deceived, anybody could get a sham address and certificate most especially from the Company House in UK which most of them use, for just £5. These companies claiming to be located in the UK or similar countries are not in actual sense located there.

thebitcoinarbitrage is not a legit investment platform. Don’t be deceived by their promises.


Everyday we get complaints of people been scammed. Most people fall for these schemes because of the sweet promises of making huge profits within a short time. On a serious note, legit systems exists but scams are very very numerous. So you need a guide to help you make a good decision. We have made it our duty, by exposing scams.

Our Recommendation

They are lots of online investment opportunities which could fetch you money and give you a good Return On Investment. We constantly search them out to guide our readers so they don’t fall for scams. Always feel free to interact with us in the comment section.

Why Bitcoin arbitrage is not very profitable

Last month the owner of Bitcoin arbitrage service Bitcoin Trader, John Carley, suddenly announced the service would be closed down, after which he disappeared into the ether. The service was likely set up as a Ponzi scheme rather than a real arbitrage service, but managed to operate for months despite consistently posting totally unrealistic trading results.

With the trading results at about 15 to 20 percent per month, a $10,000 investment would grow to nearly half a million in just two years’ time at this rate, and this does not even include the mining income. The consistency of the returns was the first red flag, as even the performance of the most stable asset fluctuates. Overly consistent returns are typical for Ponzi schemes and a sign of possible investment scams in general.

Arbitrage explained

The reason the service got away with the previous is that it claimed to earn its income via a strategy called arbitrage, which was portrayed as a safe way of generating income by taking advantage of price differences of a single cryptocurrency at two exchanges. But even though prices will indeed differ across various exchanges, and even though real arbitrage is indeed a relatively safe strategy, the second red flag should have been the height of the returns in relation to the applied strategy.

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The general principle is that risk and reward are related, and high returns do not come without high risk. At the same time, “pure” arbitrage is completely risk free in theory. So how does this mix with the results reported by Bitcoin Trader? The short answer is: it does not. To get a better understanding, consider the definition of arbitrage:

The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms.

For example, it could refer to buying one Bitcoin at exchange OKCoin for $323.81 while simultaneously selling one Bitcoin at exchange Bitfinex for $324.51, resulting in a profit of 70 cents or 0.22 percent. After the trade is done, the bought Bitcoin is send from OKCoin to Bitfinex to cover the short position, after which the USD is sent back to OKCoin to repeat this cycle. In reality this cycle would result in a loss as the trade fees on both exchanges are between 0.10 and 0.20 percent, while the costs of taking a short position (borrowing money) and sending USD are not included.

Most exchanges do not allow for short selling to begin with, leaving only a few exchanges and limited currency pairs on which trades can be simultaneously executed. If the trade is not simultaneous, then it is not really arbitrage. This would be the case if a coin is bought on one exchange and simply sold on another exchange, without having a short position there. Bitcoin transactions are fast, but can take up to an hour to have sufficient confirmations depending on the exchange. While waiting for the Bitcoin to become available for trading again, it is an open long position that carries price risk like any other. Cryptocurrencies are well known for their price volatility, and significant price fluctuations may occur even on very short periods of time. This could easily erase potential gains or worse.

False arbitrage

But even if this additional risk is ignored, it can be very hard to come up with a theoretically profitable trade. Consider another example where three Bitcoins are bought at exchange Coinbase for $326.49. This time, the coins are transferred to CampBX to be sold for $338.29 per coin (note CampBX currently does not allow short selling but will make this available soon). This would leave a theoretic profit of $35.40 in total or 3.61 percent. The trade fees of 1 percent at Coinbase and 0.55 percent at CampBX should be subtracted, leaving $20.02 or 2.04 percent.

Coinbase and CampBX were chosen because they both based in the USA. The withdrawal fee at CampBX is $15, further reducing the theoretic profit to $5.02 or 0.51 percent. With a profit this small, there is a pretty big chance of losing it due to price movements, while waiting for the coin to be transferred. Even worse is that a check by mail transfer takes several days or even weeks to be processed, so it would not be possible to repeat this cycle more than once per week. Looking at CampBX’ order book only $20 worth of Bitcoin can be sold at a price above $334.02. A full coin can be sold at the latter price. Including this in the example would already the trade unprofitable unless it is allowed to execute slowly. In this scenario, the coins would carry price risk for a longer period of time.

Limited opportunities

Lastly, arbitrage actually causes prices to move closer together. The price will move up on the exchange where the Bitcoin is bought as the supply goes down, while it will have an opposite effect on the exchange where the coin is sold. This limits the ability to generate a profit on large sums of money by nature.

Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time.


Altogether, it should be clear that arbitrage is not a magical strategy that allows large profits to be made without carrying any risk. Any fund that claims otherwise is either a scam, or at least taking a lot more risk than advertised.

The Beginner’s Guide to Bitcoin Arbitrage

By: Ofir Beigel | Last updated: 11/14/19

The fact that each Bitcoin exchange shows a different price for Bitcoin has given birth to the arbitrage phenomena. In this post I’ll explain exactly what arbitrage is and how it is conducted.

Bitcoin Arbitrage Summary

Bitcoin arbitrage is the process of buying bitcoins on one exchange and selling them at another, where the price is higher. Different exchanges will have different prices for Bitcoin, and some people manage to take advantage of this and generate profit out of thin air.

That’s Bitcoin arbitrage in a nutshell. If you want a more detailed explanation of Bitcoin arbitrage and how it’s conducted, keep on reading. Here’s what I’ll cover:

1. How Bitcoin’s Price is Determined

Before we can talk about arbitraging (i.e. buying at a low price and selling at a high price) we need to understand what “Bitcoin’s price” really means.

On any exchange, the price of Bitcoin is determined by the last trade done on that exchange. Since different exchanges have different amounts of buyers and sellers with different preferences, it’s only natural that prices won’t correlate 100%.

You can view exchanges as closed markets that aren’t directly linked. On top of that, some exchanges have very low trading activity on them which makes Bitcoin’s price on them much more volatile.

As a result, some people try to buy Bitcoins “for cheap” on one exchange and then sell them at a higher price on another exchange. Here is a great video by Andreas Antonopoulos about why arbitrage opportunities exist:

2. A Simplified Example of Arbitraging Bitcoin

Let’s take a simple arbitrage example in order to illustrate how arbitrage is done. At the time of writing, the price of Bitcoin on Bitstamp is $11,561 while the price of Bitcoin on is $11,645.

The difference between prices is $84, and this is quite a decent opportunity for arbitraging. Let’s say, you buy 100 bitcoins on Bitstamp at the rate of $11,561 each, and subsequently you sell them on at the rate of $11,645 each.

In a perfect world you’d make $87 per Bitcoin.

Let’s get down to the math:

Number of Bitcoins bought in Bitstamp – 100

Price of each Bitcoin – $11,561

Total expenses – $11,561 * 100 – $1,156,100

Number of Bitcoins sold on – 100

Price of each Bitcoin – $11,645

Total revenue – $11,645 * 100 = $1,164,500

Total profit – $1,164,500 – $1,156,100 = $8,400

An interesting thing to notice from the example above is that we need a relatively large amount of capital in order to make a substantial profit via arbitrage. However, in real life things are more complicated than the simplified example above.

3. Barriers to Bitcoin Arbitrage

When trying to arbitrage you’ll probably encounter several setbacks:

  1. It may take some time to verify transactions (to and from exchanges), and during this time the price of Bitcoin may change.
  2. Many exchanges require considerable verification steps in order to trade a large amount of Bitcoins.
  3. Exchanges fees, which I have overlooked in the given example, will eat away at your profits.
  4. Transaction volume need to be high enough on both exchanges to satisfy such large orders of buying and selling.
  5. Keep in mind that price differences can also reflect technical issues or reputation issues of an exchange. An interesting example is what happened during the last days of Mt.Gox where the price of Bitcoin was extremely low since traders didn’t trust the exchange to allow them to withdraw their funds (i.e. There weren’t many buyers on the exchange).

4. A Detailed Bitcoin Arbitrage Calculator

Now that you know what you will face in a real live Bitcoin arbitrage trade, let’s take an example that includes all of the different variants and fees involved. Relevant fees include:

  • Fiat deposit fees
  • Fiat withdrawal fees
  • Bitcoin deposit fees
  • Bitcoin withdrawal fees
  • Transaction fees (i.e. trading fees)

I’ve taken the liberty to create some sort of Bitcoin arbitrage calculator using a Google spreadsheet to show you how hard it can be to actually generate a profit.

Take a look below:

If you want to clone this calculator for yourself, feel free to make a copy using this link. As you can see, my “real world” profit comes to about a $10K loss, while I’ll need over $1.1M in capital. All of this suggests that making a profit through Bitcoin arbitrage is quite a difficult task.

In the case above, the main thing that’s eating away at my profits is the withdrawal fee from CEX. Once you get to deal with such large amounts you can reduce your trading and withdrawal fees by using OTC (Over The Counter) services.

Keep in mind that he bigger the spread (difference between buy and sell values), the more profitable the arbitrage. However, it still doesn’t amount to much unless you put large amounts of money at risk.

Another thing to take into account is that it can take up to 7 days for fiat deposits to appear on an exchange due to how slow the banking system is.

During that time, the spread can change drastically and eliminate any chance for arbitrage. So, the best tactic would be to keep some fiat currency on the exchange and choose the right time to execute the arbitrage.

Finally, any time you keep money on an exchange you’re putting your money at risk, as exchanges getting hacked or going out of business is unfortunately still common these days.

As I’ve demonstrated, you’ll need to keep a large amount of money on the exchange in order to be mildly profitable, so I’m not sure it’s worth the risk.

5. Frequently Asked Questions

Is Arbitrage Illegal?

Arbitrage is completely legal as the only thing that is being done is exploiting price gaps between exchanges. A person conducting arbitrage is just buying and selling as any other trader would do.

6. Conclusion – Should you try to Arbitrage?

The act of arbitraging Bitcoin is not as simple as it may seem at first glance. Overall, Bitcoin arbitrage may be an opportunity to make some passive income, but at the same time it involves huge risks.

Arbitrage is actually a positive process, unlike speculation, margin trading and other activities that can be viewed as market manipulation, and in some cases may even be truly harmful to the market as a whole.

Bitcoins should have the same price across all exchange. Arbitrage simply helps bring the exchanges together to the same page. As Bitcoin’s market grows, the gap between exchanges will narrow, as more and more people will conduct arbitrage.

As for the ‘how’, nowadays almost all exchanges have an API which can become a useful arbitrage tool.

Utilizing these APIs will allows you to create a custom arbitrage bot, so that you don’t have to sit in front of the computer all day. Still, even attempting to arbitrage manually can be very beneficial, as long as you watch closely and make sure you are placing simultaneous trades.

If you’ve had any experience with Bitcoin arbitrage I’d love to hear about it in the comment section below.

Cryptocurrency Scams: How To Spot Them & Avoid Being Duped

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Last Updated on June 4, 2020

Whether you believe cryptocurrencies are a bubble or not, one thing everyone can agree on is that an investment frenzy attracts unscrupulous individuals looking to prey on trader greed. We describe some of the scams and lay out steps traders should take to be safe when trading cryptocurrencies.

Common Cryptocurrency Scams

It’s easy to think that everyone is getting rich investing in cryptocurrencies. This mindset leads many traders to fear missing out on the next big altcoin offering or the next leg up in bitcoin. Many scammers take advantage of trader greed with dubious products and services, including the following:

Initial Coin Offerings (ICOs)

These are fundraising mechanisms for newly launched cryptocurrencies. Investors in ICOs receive tokens in the new venture. Investors have poured billions of dollars into more than 1,000 ICOs over the past year. While many ICOs are legitimate, the vast majority have no real business plans or technology behind them. Many get launched with nothing more than a whitepaper by individuals with no technology or industry experience.

New altcoins often make unsubstantiated claims about their products. Recently the US Securities and Exchange Commission (SEC) filed fraud charges against two ICOs it says were sold on the basis of fraudulent claims. China has banned the sale of ICOs, and many individuals familiar with fraud, including the famed Wolf of Wall Street, Jordan Belfort, have described ICOs as the biggest scam ever.

Unregulated Brokers & Exchanges

There are dozens, if not hundreds, of unregulated online exchanges and brokerage firms offering cryptocurrencies and cryptocurrency trading products. Investors should be wary of too-good-to-be-true promotions and promises of quick riches. Once you deposit money, many of these firms will charge you outrageous commissions or make it very difficult to withdraw funds. Some of the worst offenders will simply steal your money.

Bitcoin Trading Systems

Bitcoin’s extraordinary volatility has spawned an industry of automated trading systems.

The promoters of these products promise traders a way to beat the market by arbitraging prices between different exchanges. Don’t believe the hype. Bitcoin exchanges often have expensive withdrawal processes and hefty fees for trading bitcoin with fiat currencies, such as dollars or euros. Also, settlement of bitcoin trades can take hours. These factors will eliminate any profits from bitcoin arbitrage and may even lead to losses.

How to Safely Trade Cryptocurrencies

Cryptocurrency trading is risky and highly speculative, so there is no low-risk way of investing. However, traders can mitigate some risks by following a few simple rules:

Invest only what you can afford to lose

Cryptocurrencies are far more volatile than stocks and bonds, and the industry evolves rapidly. An altcoin that is popular today may not exist a month or a year from now. In other words, traders should consider the possibility of losing everything when they start trading. For this reason, you should put only a very small portion of your portfolio in this sector.

Research investment opportunities carefully

Investors should read reviews on brokers and exchanges prior to opening accounts. The cryptocurrency industry has news every day on new products and exchanges, so finding good current information is vital. Forums such as CryptoCompare and BitcoinTalk can be a source of information and advice.

Trade cryptocurrency CFDs instead

If you want to speculate on the price of a cryptocurrency then the use of a Contract for Difference (CFD) is an option to consider. You won’t actually own the cryptocurrency, which means you don’t face the hassle and hurdles of trying to buy via one of the unregulated exchanges. Instead, a CFD is a financial instrument which allows you to speculate on price movements.

The value of a CFD is the difference between the price of a cryptocurrency at the time of purchase and the current price. In other words, the value of a CFD increases as the price of the cryptocurrency increases but falls if the price declines.

This can serve two purposes; firstly, CFDs are a regulated financial product which means the brokers who offer them should be licensed by a regulatory authority. The brokers we review are all regulated by reputable financial regulatory bodies, offering varying degrees of protection for your money – from ensuring it is held in a segregated bank account to participation in compensation schemes should the broker become insolvent. There are, of course, criminal CFD brokers operating outside the law so you should do your homework before depositing!

Secondly, many reputable CFD brokers have risk management tools which enable you to limit the amount you can potentially lose. For example, you can set a stop loss so that if a market moves against you, your losses are limited to a set amount. This is essential in the volatile cryptocurrency markets.

Finally, a regulated CFD broker will provide clear guidance on any applicable trading fees – this isn’t always the case when working with an unregulated cryptocurrency exchange or broker.

Please remember; CFDs are for experienced traders and can result in total loss of capital.

Arbitrage Coins Review – Is Scam?

Arbitrage Coins is a cryptocurrency trading bot which specifically trades arbitrage opportunities only. More than 50 exchanges are compatible with this bot. Returns advertised by them is not fancy but still it is on the higher side.

This bot executes nearly 1000 trades on a monthly basis. However, they do not feature the trading history.

Their platform is subtle in their approach, apparently that might be the reason why many people signed up with them. Before depositing with them, check out our full review, which will give you a clear perspective about them.

How does Arbitrage Coins Work?

This software is always on the lookout for trading opportunities. As the name suggests, it is based upon the arbitrage principle. Basically, it takes advantage of scenarios wherein temporary price discrimination arises on two different exchanges.

Though, by definition it is supposed to be risk free, the risk cannot be eliminated completely. Slight delay in execution or order getting filled at the wrong price will make or break your account.

In their promotional video, they stress about the importance of having this bot and how it will making trading hassle free for you. Unfortunately, they haven’t provided the exact rundown of the trades, their software has achieved over the years.

Most of the program on the internet have hype around them. Before you decide to commit your capital, make sure that it indeed is a legitimate solution by looking over their past performance reports.


Before the internet shaped the online trading world. Arbitrage was the way used by many traders to make some serious money. Moreover, there weren’t enough traders who were aware of these kind of scenarios back then.

The price mismatch almost lasted for few minutes back in the early 2000’s and it occurred frequently as well. This platform claims to generate upto 30% ROI on a monthly basis. However, note that there are not making any guarantees.

The returns portrayed by them are certainly on the higher side. Do not get too excited about the profits because there isn’t any supporting evidence.

Affiliate Program

All the business needs constant stream of clients in order to expand their horizon. This platform features a referral program wherein they pay the promoters for every investor they bring on board. The exact commission percentage is unknown, but we believe that it might be around 40%.

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Affiliates are free to choose any type of advertising methods they want to use. It is not mandatory for the promoters to be an active investor. In short, they are not using this software personally.

Domain Whereabouts

Below we have gathered certain important details of this website with the help of and The registrant details are untraceable for some reason.

Registered On – 06/06/2020

Expires On – 06/06/2020

Alexa Global Rank – 1,175,732

Red Flags

In the promotional video an employee of this firm presents their platform. Apart from the information on that video, there isn’t any details about that person online. It would have been a kind gesture on their part, if they had features the links to their LinkedIn account. Since, they haven’t done that, we couldn’t verify their identity.

The user testimonials we found on did not give us any confidence. Here is what an user said about them.

B.S. has mega issues and problems. Customer Service chat (the only method of contact) takes hours to get a response and if you don’t respond right away, they dump you and you have to wait some more hours to start the conversation over. If you’re not a complete scam, you don’t have near enough customer support. Remember that people are more likely to resolve the issue on your site first. It’s only after tiring efforts to get things resolved that most people will bitch on the forums. No proof needed, it’s human nature. Good Customer Service doesn’t demand proof. So your option here is to support your customers and quit scamming them -that’s the only solution.

Arbitrage Coins Review Conclusion

Arbitrage Coins is a software which has a rough history. Some people have claimed to have made money with it. While, the vast majority are on the other side of the fence.

They are integrated with more than 50 exchanges, but if they are not profitable, then what is the use of having them? Our advice is to start with the minimum amount and if things are going according to their plan, then you can scale up the capital amount.

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