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Crypto arbitrage or Bitcoin arbitrage is the process of buying cryptocurrencies from one exchange at low prices and selling them in another exchange where the prices are high. Users can do it manually which take time while use of automated cryptocurrency arbitrage bot platforms are the process more efficient and profitable. It works just like a stock market, where people try to make a profit out of the volatility of the price differences in the bitcoin exchanges.
How Does Crypto Arbitrage Work?
Arbitrage trading works on the price differences between the exchange markets. For example, in the large exchanges, you will find high trade volumes and lower prices of bitcoins. Again, in the small crypto exchanges, the supply is less while the prices are high. Traders take advantage of this situation and buy cryptos in bulk from large exchanges at low prices and sell them at high prices in the smaller exchanges thus earning massive profits.
However, the recent ‘bull market’ has caused an increase in the overall volume of crypto trades in all exchanges that an increase in share prices resulting in massive sales even in small exchanges.
Barriers to Bitcoin Arbitrage
Arbitrage trading has limitations such as:
- Verification of transactions can take some time. The prices of the cryptocurrencies may change during this time.
- The verification process may be cumbersome especially if you are trading large volumes of crypto.
- Exchange fees may be too high and may leave no profits in the end.
- You need to make large volumes of trading in both the exchanges to make profits.
- Traders should make a thorough check of the exchanges with which they are trading. Often exchanges with low prices have trust issues and are unable to satisfy their customers.
Now that we have learned about crypto arbitrage trading, let us have a look into some of the best crypto arbitrage trading platforms:
Best Cryptocurrency Arbitrage Bots
Bitsgap
Bitsgap is another arbitrage trading tool that allows you to make profits through arbitrage trading of bitcoins and other cryptos in exchanges. Key features include:
- All trades depend on the available funds in your account.
- Bitsgap provides arbitrage trading in both cryptocurrencies and fiat currency.
- Arbitrage fees are included in the profits.
- Supports most of the popular cryptocurrencies.
- It is AI-integrated and fully automated to facilitate your trading.
- You can create your account with fiat currency like USD and EUR or cryptocurrency.
- The smart API protects your funds and helps you to build a smart portfolio in the trading platform.
Arbitrage.Expert/Automated Crypto Arbitrage
Automated cryptocurrency trading bots are the software which executes automated buy and sell orders with the goal of making profit. Similarity, automated trading with the software bot especially made for the purpose of arbitrage are know as Automated Crypto Arbitrage trading. One example of such platform is Arbitrage.Expert website. This platform uses an advanced version of algorithmic arbitrage trading bot. Features include:
- Arbitrage bots help to do crypto trades taking leverage of the price differences prevalent in different crypto exchanges.
- Do trade with the help of API tools without withdrawing the funds.
- Faster trades with arbitrage bots.
Gimmer
Gimmer is another arbitrage trading bot in the crypto trading market. GMR is the official token of this platform and is available on the exchange platforms and it supports multiple cryptocurrencies. Here are some of the key features of Gimmer:
- The automated bots are integrated with all the major trading exchanges.
- Users get access to a basic level of automated trading bot for free.
- Gimmer will study your profile and let you know about the risks involved while you are investing in the exchanges.
- Free back testing tool that enables you to test your trading strategy to understand the pros and cons before you implement it in the market.
- You can also earn cryptos buy renting your automated bot to other crypto traders.
- Multiple safety protocols to safeguard your hard-earned money.
- You can choose your trading bots if you are looking for more investment opportunities.
- Exchange information and ideas in the social network of traders and learn more about arbitrage trading.
- Practice arbitrage trading with the help of the simulator mode.
- Hosts lightweight dApps that are fast, secure, and affordable.
MultiTrader.io
MultiTrader is one of the finest crypto trading platforms. It uses arbitrage trading bots that make the work automatic and easy. At present, MultiTrader is working with 21 crypto exchanges and constantly looking out for trading opportunities. Key features of MultiTrader platform includes:
- A user-friendly interface where traders can analyze the progress.
- Uses statistical calculations and order book matching to search for potential opportunities in arbitrage trading.
- It provides cloud-based solutions.
- You can review the trades with the help of bots.
- Users can get periodical reports on their trades.
Conclusion
Many services and product have emerged as the popularity of digital currency expanded. To make better profit in the event of fluctuation in the market, users now started using automated trading bots such as cryptogenisus.com. Bitcoin arbitraging is a complicated process and may involve risks. Now with more and more people coming into the market, arbitrage has become very profitable. The API-based arbitrage bots have made the process simple and save time and effort. Though the cryptocurrency arbitrage bots have automatized trading, still users are recommended to do manual arbitrage as this minimizes the risks of trading.