Last Updated on February 21, 2021 by cryptocreed
If you are aware of cryptocurrency arbitrage then you know how much profitable it is. We can also call them short selling trading method.
Bitcoin arbitrage or crypto arbitrage is the simple process of buying and selling cryptocurrency, low rate to high rate. You buy crypto coins from one exchange at low rates and sold them to another for high rates.
It has nothing much different than trading but what actual users have to look for prices on different cryptocurrency exchanges.
There are already more than 100 trusted and active cryptocurrency exchanges where you can start according to your location and preference.
What Is Cryptocurrency Arbitrage?
Before knowing cryptocurrency arbitrage platforms let’s understand what is cryptocurrency arbitrage first. Here when we say cryptocurrency then we consider each and every digital coin including stable coins too.
When someone buys any digital currency at a low rate from one exchange and sold them to another exchange and makes a profit out of that exchange is the process of cryptocurrency arbitrage.
Stable coins are also arbitrageable.
How Cryptocurrency and Bitcoin Arbitrage Work?
It is as easy as you dance. You do dance either you know how to or not and at the end you did dance. The same is here, you can try to do arbitrage either it is successful or not.
Assume, you checked the price of Bitcoin on Kucoin and Binance and you found that there is a gap between prices. BTC price on Binance is $30000 and $30300 on Kucoin.
So, You purchased 1 Bitcoin at Binance for $30,000.
Now the price of each Bitcoin on Kucoin is $30,300. So, you sold 1 Bitcoin at Kucoin for $30,300.
On Binance you had BTC worth $30000 and now you have $30,300.
But now you have to add the fees too. The transfer fee, Trading fee, and Withdrawal fee (in case you want).
Assume you paid $20 as a transfer fee at Binance and paid out $10 as a trading fee.
Let’s calculate them now;
Price different: 33,300-30,000= $300
Fees: 300-20-10= $270
Your total profit is $270 from 1 Bitcoin.
Best Cryptocurrency Arbitrage Platform
KoinKnight is one of the most active and trusted cryptocurrency arbitrage trading platform. They provide arbitrage opportunity for 20+ cryptocurrency exchange.
The major exchanges they have are Binance, Gate, BitBNS, CEX, Bittrex, and many more.
You can try them for free but to use them daily you have to spend some money to purchase an upgraded version. They have three plans according to timespan are for 10 days, 30 days, and 90 days.
- Real-time data
- Arbitrage time
- Set alerts
- Set investment limit
- Real-time notification
- Trading volume
- Live to track arbitrage
BitsGap is one of the best crypto arbitrage bot that allows you to do trading and arbitrage trading within a single platform. They show you the latest crypto arbitrage opportunities.
Arbitrage is not free they have three different plans. The major changes in plans are the numbers of BOTs allowed and the monthly trading limit, which you can find below.
But trading is free for a trial. In the trial, you can trade for up to $1K with limited access to the platform. This can be the best crypto arbitrage platform for trial lovers.
To use their platform you need to create an account on exchanges and connect it with the BitsGap platform. You can find API in your account easily which you have to submit to BitsGap to access their platform.
Note: Sharing APIs with someone gives them access to your account to them.
HaasBot is part of the HaasOnline which is the advanced crypto trading platform. You can start using their platform as low as 0.006 BTC for 3 months 0.039 BTC for 9 months with all features.
HaasBot was launched in the year 2014 by Stephan de Haas. And since then they worked smoothly and actively. It is the best crypto arbitrage software ever I saw.
They are working with big exchanges like Binance, Bitfinex, BitMEX, Coinbase Pro, Gemini, Huobi, Kraken, Kucoin, and others.
Blackbird Bitcoin Arbitrage
Blackbird is a cryptocurrency arbitrage software that you need to run by your own. It is a C++ trading system that does automatic long/short arbitrage between Bitcoin exchanges.
You can download the file of the codes from GitHub here https://github.com/butor/blackbird. The code helps you to use the following major cryptocurrency exchanges Bitfinex, Exmo, Kraken, OKCoin, Bitstamp, and Gemini.
- Huge profit
- Lot’s of cryptocurrency to do arbitrage
- Easy to start
- Lot’s of fees trading, withdrawal, and deposit
- Price fluctuates anytime
- Verification required
- Deposit and withdrawal make time and in between price can change immediately
What Is The Best Alternative Of Cryptocurrency Arbitrage?
Those who have less knowledge and fewer funds can do short selling. Like if you have a budget of $100 then buy any coin which has a price below $0.20 and sell them when the price goes up.
For example, you purchased an ORO token at $0.10 instantly and put it for sale at $0.13. If you have invested $100 in this method then you will get 1000 ORO tokens at the rate of $0.10 and when you sold them for $0.13 then you are making a profit of $30 directly.
Here you save the withdrawal fee and deposit fee as you have to do all this trading on the same platform. Better than any Cryptocurrency Arbitrage Platform.