How to Maximize Your Arbitrage Trading Profits in 2020

The concept of arbitrage is a well-known practice in the trading world. Price mismatches occur due to market inefficiencies, the same asset could be priced differently on the exchange. The most effective way to take advantage of arbitrage opportunities in any market is to use a software solution to automate the process. In this article, we will explore such platforms that you can set up or sign up to start generating daily profits just by using arbitrage. Bitbengrab, a UK-based company formed by a team of expert traders and programmers, allows traders to trade on 29 exchanges at once. The platform uses real-time data such as order books, order books and order books.

No profile

This profile does not exist.

Arbitration is simple. Due to market inefficiencies, the same asset could be valued differently from market to market. Therefore, you can buy an asset in one market and simultaneously sell it in another market at a higher price to make a profit. Although considered a risk-free trading strategy, it is almost impossible to execute it manually because the key here is “simultaneously”.

The most effective way to take advantage of arbitrage opportunities in any market is to use a software solution to automate the process. In this article, we will explore such platforms that you can set up or sign up to start generating daily profits just using the concept of arbitrage.

Maximize arbitrage profits

Arbitrage is a well-known practice in the trading world. Price mismatches occur due to market inefficiencies. In response to this, arbitrage was introduced as a mechanism to ensure that prices do not deviate substantially from fair value for long periods. And naturally, those who help the market are rewarded.

Source: coinarbitragebot.com

First, trading was done manually. Today, with advances in technology, the process has been automated, making markets even more efficient. Computerized trading systems monitor price fluctuations 24/7 and execute trades almost instantaneously and simultaneously. As a result, pricing errors are corrected in seconds and arbitrage opportunities disappear with them.

Arbitration is necessary in the financial world. Arbitrage is a way to earn regular income on a daily basis. But you need to choose the right software solution to be able to participate. And, while most solutions are tied to a limited number of assets or markets for efficiency, you need to understand where is the best place to deploy your software solution for maximum profits.

Arbitrage has been around since the invention of marketplaces and as a trading strategy it is used for any type of market. Price shifts happen every second. Balancing transactions are triggered automatically by a computer. And profits are collected on every trade. It looks like an endless loop that can generate money for you indefinitely. However, traditional markets are tied to working hours. When the working day is over, the exchange stops trading. Some exchanges even remain closed on public holidays. These are times when your profit machine stops. That’s why you should look for real global markets that never stop.

Cryptocurrency exchanges are open 24 hours a day no matter what. There are no weekends or holidays and trading volume comes from all over the world at all times. With such price action, it’s no surprise that cryptocurrencies are known to have wild price swings. In the crypto market, trading on a 5-10% change in value is a daily thing.

And there is another thing to consider. Most cryptocurrency exchanges use so-called oracles to get their price data. Due to latency and lag, most of the time the last price on a trade is not current which creates another arbitrage opportunity. Cryptocurrency markets are goldmines for arbitrage trading if you can act fast and track the action 24/7.

Trade on 29 exchanges at once

Arbitrage involves locating price differences across multiple exchanges. Therefore, having access to more exchanges at once not only gives you a better chance of finding price mismatches and profiting from them, but also mitigates the liquidity risk of cryptocurrency.

Looking for a tool that could help me reach as many exchanges as possible at once, I came across Bitbengrab, a UK-based company formed by a team of expert traders and programmers. The trading platform they have developed uses the unique trading nature of cryptocurrencies to take advantage of arbitrage opportunities that form in the markets and generate profits for their users of up to 4% to 10% on a daily basis.

Bitbengrab allows traders to connect to 29 exchanges at once. Exchanges like Binance, Bittrex, Bitfinex are supported. The platform uses its libraries to retrieve real-time data such as prices and order books and then tries to find the price differences between multiple market pairs and exchanges. Everything happens automatically.

It’s up to you if you want to execute the trades manually or if you want to let Bitbengrab do the hard work for you. The platform only needs your exchange API key. The required permissions are to view your balance and execute transactions.

No withdrawal or deposit authorization is required, so your funds will always remain with the exchange. The minimum deposit is as low as $10 and it supports the most popular cryptocurrencies: BTC, ETH, USDT. The platform was launched not long ago and it needs to make a name for itself first, but it has a good start and a green status.

Host your own arbitrage bot

Arbitrage is not only repetitive, but you will only be able to make a profit by buying and selling on the exchanges almost at the same time. Doing this task manually is nearly impossible. This is why you will need a software solution to help you. If you are tech-savvy, you might want to host your own software as a money-making machine.

One open-source solution is Blackbird, a bitcoin arbitrage bot written in C++. It supports a good number of exchanges including Bitfinex, OKCoin, Kraken, but not even as many as Bitbengrab. Setting it up requires a bit of work, but the installation process is pretty advanced for someone who knows programming and C++.

Once configured, Blackbird allows you to perform long/short arbitrage between Bitcoin exchanges. It doesn’t buy or sell Bitcoins, so you don’t need to transfer funds between exchanges.

The trading robot only shorts/buys your coins on a short/long trade. Buying and selling activities are done on two different exchanges independently but simultaneously. Bitcoin is the only supported asset and the strategy is always market neutral, never being influenced by the actual price movements of BTC. The profit opportunities might not be that high, but it’s a great tool to start experimenting with arbitrage trading as a programmer.

Use your trading experience

Exchange arbitrage is a simple and straightforward strategy that could bring you consistent daily profits, and using a platform like Bitbengrab should be enough for you to take advantage of most opportunities that arise in the trading markets. cryptocurrency. Anyway, if you are an experienced trader, you might want to combine it with other trading strategies to maximize your profits.

Exploring auto trading platforms that might give you enough freedom to program your own goals, Cryptohopper seems to cover the essential requirements. The online platform allows you to set up a semi-automated bot that can execute trades on your behalf. Know that the bot we are talking about is only as good as the person programming it. While the platforms mentioned above automatically look for arbitrage opportunities and execute them for marginal profits, the bot only follows the underlying conditions set during initialization.

The online platform allows you to set up a semi-automated bot that can execute trades on your behalf. Know that the bot we are talking about is only as good as the person programming it. While the platforms mentioned above automatically look for arbitrage opportunities and execute them for marginal profits, the bot only follows the underlying conditions set during initialization.

Currently, the platform supports 11 exchanges including Bittrex, Poloniex, Binance. This is not the optimal range for arbitrage but, given that these are some of the biggest exchanges in the space, there are plenty of opportunities to trade on.

Cryptohopper is a subscription-based service and the exchange arbitrage feature is only available for the pro subscription. Using it only to generate regular profits may not be realistic, as your earnings must first break even on payment fees before turning into profits.

Choosing a trading platform is not as simple as choosing the most popular choice. Each platform has its pros and cons and it’s up to you to weigh them up and decide which is best for you. All of the solutions listed above have the potential to generate passive income for you on a daily basis.

They all have the ability to follow the arbitrage trading strategy. They all access multiple exchanges at once, seizing opportunities that arise every day.

If arbitrage trading was profitable long before the invention of cryptocurrency, you might find that an open market such as the cryptocurrency market introduced even more chances for you to profit from lags. of price. The best traders take advantage of it while it lasts!

Related stories

LOADING
. . . comments & After!

About Chris McCarter

Check Also

Ethereum Merge Makes the Network More Vulnerable to Attack — Security Researcher

Although the Ethereum merger is being touted as a major upgrade to the blockchain network, …