Cryptocurrency Arbitrage 101

Teaching you all the crypto arbitrage basics that you need to know.

Cryptocurrency Arbitrage 101

In trading, arbitrage is a common tactic used that involves the buying and selling of currency on one exchange platform with a lower price to another with a higher price to maximise profit. 

The same goes for cryptocurrency arbitrage, but this happens virtually where individuals make arbitrage trades in the cryptocurrency market. 

Here are two crypto arbitrage mainly used by investors:

Inter-exchange arbitrage

The buying and selling of currency from different exchanges to take advantage of the price discrepancy of different exchanges. This method is also commonly used in forex and sports arbitrage. For instance, you buy Exchange A at USDT 100 and sell it for USD150 in Exchange B and profit USD50 from that transaction. 

Intra-exchange arbitrage

Also known as triangular arbitrage, this type of arbitrage allows you to benefit through three different currencies within a single exchange. You start by purchasing ETH with fiat currency and use ETH to buy BTC. Then, you convert the BTC back into fiat currency for profit.

Arbitrage is a money-making tool 

With the aid of analysis tools and a plethora of information from the internet, many ride the arbitrage wave as arbitrage provides individuals a quick way to earn a passive income. 

Altimates 5th Gen Arbitrage Mode is able to perform social trade that allows traders to copy expert trader’s trading patterns. Other than AI-empowered auto trade mode and 24/7 market analysis, Altimates’ platform integrates with blockchain, artificial intelligence, big data analysis and cloud computing system for effortless arbitrage trading.  [Read more: The leading platform for arbitrage trading] 

Investors have a variety of exchange platforms that they can choose from while the high volatility of crypto markets facilitate potential arbitrage opportunity. Just take a look at Bitcoin's price chart for the past 12 years and you will get what I mean. 

What are the risks?

Now, just before you jump into the cryptocurrency bandwagon, crypto arbitrage can be tough work. There are some risks that you need to know, but there are always ways to mitigate it. 

Slow Transfer Speed

When you are trading manually, it is important to know that exchanges do not happen immediately.  In order to profit from arbitrage, you have to monitor the market closely and act quickly. 

But what if you're not a full-time trader or your internet connection just wouldn't cooperate at times like this? You’ll miss out many arbitrage opportunities if you are not quick enough.

Enough with the fiddly process, Altimates offers a solution to that problem. When trading using Altimates platform, Altimates Intelligence (AI) detects a profitable arbitrage in an instant and automatically executes millions of trades within seconds, allowing you to maximize your profit with ease.  

High transaction fee 

You are making the biggest trading mistake if you trade without noticing the transaction fee. Exchange platforms are known to charge a high transaction fee and chances are you are losing money due to insignificant transaction fee. In this situation, Altimates will ensure that novice mistakes like this will never happen.

Whenever there is an arbitrage opportunity, Altimates Intelligence robot calculates the percentage of profitability and determines whether it is favourable to trade. You won't be able to conduct any trades if you are not earning, Altimates can assure you that. Altimates will only make desirable trades that will benefit you and your pocket. 

Broker or platform scams

Oftentimes, your money is placed with trading firms or financial advisors for them to trade on behalf of you. However, be prepared to meet brokers who give out empty promises, fake brokers, or even shady trading firms. 

In facing such possibilities, are you able to completely entrust them to manage your assets? 

With Altimates, you can put those worries away. Altimates facilitates arbitrage trading through their secured system by preparing a personalised account in Altimates platform. Users can compare prices in different trustable exchange platforms and invest anytime, anywhere they want. In simple terms, your money is in your hands. 

Risk-free arbitrage trading

Arbitrage trading can be zero-risk with Altimates leading you through the way. In your perilous journey to reap a fortune, let Altimates be the one to guide you forward. 

To find out more about arbitrage and Altimates, check out the links below: