Cryptocurrency Arbitrage Trading

What is C.A.T?

Arbitrage is a strategy of buying and selling one asset that is priced differently in different markets. Traditionally these were done with assets such as stocks and currency, but crypto arbitrage is done with cryptocurrencies across different cryptocurrency exchanges.

As a booming asset and investment sector, cryptocurrency’s volatile price and growing number of exchanges present opportunities to investors who are able to take advantage of crypto arbitrage when it still exists. Technology progresses at an unprecedented speed and we are here to provide the savvy investor with the advanced tools to capitalise on critical times such as these.

Arbitrage Strategies

There are many different types of arbitrage

Spatial Arbitrage

Also known as Simple Arbitrage this is where a currency is bought from one exchange, then sold to another exchange. The price discrepancy between these exchanges are what yields the profit. However, there are a few considerations such as market fluctuations and transaction time or costs, making it a higher risk arbitrage.

Deterministic Arbitrage

Similar, but less riskier form of arbitrage. This is when you buy an asset for $100 on exchange A, while selling the asset for $150 on exchange B simultaneously. The spread of this trade would then be the $50 profit.

Triangular Arbitrage

An example of triangular arbitrage is where one currency is converted to another, and then converted to another currency, and finally back to the original currency. Tiny price discrepancies for these 3 different currencies are identified and the trade is completed in seconds to gain a profit.

Statistical Arbitrage

When 2 assets have high correlation with each other, like Coca-cola and Pepsi, they tend to grow and fall in tandem. When historical data confirms this, traders will identify this opportunity to trade. As these stock prices rise and fall with a slight delay, traders will take it as an arbitrage opportunity and buy or sell in anticipation of the predicted outcome.

Next
Back

Why Altimates Intelligence(AI)?

  1. Search and compare all cryptocurrency prices at every exchange available in real time 24/7.

  2. Provide detailed research and reports on a cryptocurrency’s trends, exchanges and market health, then suggest the best possible trade to the investor.

  3. Trade at lightning speed, beating other bots, traders and market corrections.

  4. Identify the best strategy in order to execute a profitable trade in different situations.