HOW DOES ARBITRAGE WORK ?


ARBITRAGE BETWEEN CRYPTO EXCHANGES

— What is arbitrage between Exchange? The official definition reads as follows:


«Arbitrage is a simultaneous execution of a number of exchange transactions, aimed at making a profit as a result of price differences on the same or related assets at different trading platforms»




In applying to the crypto market this means the following. Let's say that there are two exchanges allowing to trade a pair of bitcoin-dollar. On one of them (to devote it "Exchange A") the rate at present makes 15900 USD for one bitcoin, on another ("Exchange B") the rate is equal to 16400 for one bitcoin. It seems that there is nothing simpler-to register on both exchanges, buy Bitcoins at the first for a lower price, then transfer cryptocurrency to the second exchange and sell.

In fact, it's not that easy.

And dreams of newcomers who believe that arbitrage cryptocurrency exchanges-it is easy, fast and exciting, are broken about one big «but».

Commission!

IF WE ADD A COMMISSION TO OUR EXAMPLE, THE PICTURE WILL NOT BE SO HAPPY. THUS, AT THE COMMISSION OF 4% ON THE ENTRY OF USD INSTEAD OF 15900 DOLLARS ON THE EXCHANGE AND WILL FALL 15264 DOLLARS. ON THEM WITH ACCOUNT OF THE AVERAGE COMMISSION 0.2% ON PURCHASE IT IS POSSIBLE TO BUY 0.95808 BTC. ON THE EXCHANGE B WILL GET ALREADY 0.95708 BTC, AND AT THE RATE OF 16400 DOLLARS FOR BITCOIN TRANSFERRED FUNDS CAN BE SOLD FOR 15665 DOLLARS. THAT IS, WITH A SUFFICIENTLY APPRECIABLE DIFFERENCE OF RATES ON THE EXCHANGES, THE PROFIT IN THIS EXAMPLE WILL NOT BE POSSIBLE.

WHAT ARE THE ADVANTAGES OF AUTOMATIC ARBITRAGE IN COMPARISON WITH NO-AUTOMATIC ?

Another thing is when it comes to trade whole pool cryptocurrency simultaneously on a large number of exchanges with help automatic trading algorithm.

SAVE TIME. The EA independently monitors the current situation on different exchanges, finds the necessary difference in quotes, quickly makes deals without requiring trader's participation.
CONTINUOUS TRADING. The robot does not need vacation or breaks for lunch and sleep-it can safely trade around the clock, and on all liquid cryptocurrency simultaneously.
ACCURASY. Since the robot operates strictly according to the mathematical algorithm, it is never mistaken in calculations and does not miss profitable deals even in the case when a person considers the signal ambiguous and fluctuates in the decision making.
SPEED. Objective analysis of the market and qualitative calculation of risks is carried out every second. A person does not need to track quotes on different exchanges, transfer coins from one to another. The robot makes opposite deals simultaneously on different exchanges.

Thus, the purchase of cryptocurrency on one stock exchange and subsequent sale of it on another, minus the Commission can bring a quick profit. You can start working with us with any amount acceptable to you.


Earning with us can be absolutely everyone



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