What is crypto arbitrage trading?

Difference on many currencies

What is crypto arbitrage trading?

The most famous cryptocurrency is Bitcoin. Besides bitcoin there are thousands of other currencies (6.537 on august 22nd 2020 according to coinmarketcap).

These currencies can be bought and sold on over 500 exchanges in the world.  You can choose from 26.957 markets (trading pairs) to trade on.

The complete market is worth over 362 billion dollars.

All the exchanges have their own rates for all the markets they are in. So you can imagine that there are lots of price differences in the world.

Crypto arbitrage traders take advantage of these differences. They buy at the exchange with the lowest price and sell at the highest price.

What is crypto arbitrage trading
crypto currency rates

Rate difference in currencies

The cryptocurrency market is a decentralised market. That means that exchanges determine their own rates.

It is easy to compare rates online. Visit for example three different exchanges and you will find three different rates.

If you want to make an exact calculation, you have to look into the fees of the exchanges. If you make such a calculation you will come to the same conclusion: the rates are still different.

What determines the price of cryptocurrencies?

The price of cryptocurrencies is harder to predict than the price of stocks or fiat money.

Most traders try to predict the trend through technical analysis. Most currencies follow the trend of bitcoin, but of course there are always exceptions.

The price of currencies with a small marketcap can easily be influenced by a big trader. That can even happen to the trend of bitcoin, because there are only a few people that have a big amount of bitcoins (the so called ‘whales’).

Sometimes the trend changes very unexpectedly, while there is no obvious reason. It is possible that the price is manipulated by a few big whales.

crypto currency rates

Is crypto trading profitable?

In a very volatile market, when the rates go up and down very fast, traders can make profits of more than 100% per day.

Because of the lack of information, it is very hard to predict the trends. Some technical analysts will tell you different, because they made high profits. How they did that will be their secret.

Just like in forex trading there is a big risk in crypto trading. Compared to the stock market, most stocks will recover their losses in time, so you can hold longer. With cryptocurrencies you never know. Many currencies don’t exist for very long.

Low risk cryptocurrency trading

Do you want to earn money on cryptocurrency trading without the big risks? Thats is possible when you take advantage of the rate differences between all exchanges.

To do that, you need to find profitable differences and you have to find a way to trade fast.

This is the base of crypto arbitrage trading.

Make profit with crypto arbitrage trading

Arbitrage trading software

The ingredients are clear, now you have to find a way to implement the theory into practice.

It is impossible to do this without an automated system, that will do most of the work for you.

You will need a lot of time, knowledge and money to develop a system like that.

In our opinion it is much faster and easier to find a company that does all this work for you and to use their system.

These companies do exist. They render you this service for a certain fee.

Profit from crypto arbitrage trading

The development of crypto arbitrage software is very costly. It’s a long lasting process, that also needs a lot of testing. Overall it will take several years to create the perfect software.

Companies that made this effort, are happy to let you participate in the opportunity they created in order to rapidly increase their scale of operation.  

If you invest money, the system will create a profit for you. In return you pay the company an agreed part of your profit. Everybody wins.

Win win in crypto