Hello everyone! Me and my friend made website where you can check
cryptocurrency upcoming events .
Also on this site you have tool made for
cryptocurrency arbitrage trading (checks price differences on various exchanges).
What is cryptocurrency arbitrage trading? The idea is to buy cheap on exchange A, transfer to the exchange B where you can sell for more and sell. At the end to go through the full circle, send what you’ve received for the transaction from exchange B to exchange A. Repeat…
An arbitrage is the possibility of a risk-free profit after transaction costs. For example, an arbitrage is present when there is the opportunity to instantaneously buy something for a low price and sell it for a higher price. People who engage in arbitrage are called arbitrageurs, such as a bank or brokerage firm. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.
With so many exchanges available, there could be the same asset but with different price on different exchange. For instance, the price of an asset A on exchange 1 is 10$, while on exchange 2 it is 15$.
Arbitrage is typically made possible by a difference in trading volumes between two separate markets. The reason behind this is simple: in a market with high trading volumes where there’s reasonable liquidity of a particular coin, prices are generally cheaper. Meanwhile, in a market where there’s limited supply of a particular coin, it will be more expensive. By purchasing from the former and instantaneously selling on the latter, traders can theoretically profit from the difference.
The most basic approach to cryptocurrency arbitrage is to do everything manually – monitor the markets for price differences, and then place your trades and transfer funds accordingly. However, there are several cryptocurrency arbitrage bots available online that are designed to make it as easy as possible to track price movements and differences. Online or mobile trading apps, such as Blockfolio, can also simplify the market monitoring process.
Cheers and enjoy
Ps. Let me know if you like it!
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