Bitcoin Traders Should Explore Foreign Exchange Arbitrage Opportunities

Arbitrage in the cryptocurrency world is nothing new under the sun, as various exchanges seem to maintain different prices. However, these gaps are usually a few dollars worth at best. That situation has come to change, as trading Bitcoin or other cryptocurrencies against particular fiat currencies may prove to be far more lucrative than anticipated.

FX Turmoil Opens Reverse Bitcoin Arbitrage Opportunities

When it comes to arbitraging Bitcoin exchanges, traders will usually stick to the same fiat currency. For example, one exchange trades 5-8 USD above or below the next, which creates a gap waiting to be exploited. Events like these are not all that uncommon, albeit less frequent than some people may like at this point.

But just a week ago, a reserve scenario had taken place. The volatility across foreign exchange markets is creating some interesting shifts very few people will take advantage of. Bitcoin, due to its global appeal, can be traded against nearly every fiat currency in the world. Given the volatile nature of some of these currencies, such as the Yen, Real, and Ruble, new price gaps emerge.


Although it takes some figuring out, it is not hard to spot new golden opportunities for arbitrage. Every fiat currency has a value denominated in US Dollar on the price charts. However, this also means that selling Bitcoin for local currency can be converted to a USD price. In some cases, there can be significant gaps between buying Bitcoin with one currency and selling it against the next.

Figuring out the price correlation between fiat currency values for Bitcoin -in USD – and the profit to be made – in USD – can lead to some healthy gains. Do keep in mind these arbitrage opportunities usually occur in smaller markets, and orders will not always be filled instantly. In some cases, it may take days, or even weeks, to see a buy or sell order filled.

Little over a week ago, there was one such opportunity to buy Bitcoin for Russian Ruble and exchange it to Brazilian Real. If executed correctly, and minus the trading fees, there would be a USD value profit of about 85-90 per trade. That does require users to have access to these foreign currencies, though, which will hardly be the case for the everyday person. For experienced traders, however, exploiting foreign exchange volatility through Bitcoin may be a welcome opportunity.

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