Arbitrage is simple. Due to the inefficiency of the market, price of the same asset can be set differently, on the exchange. So you can buy assets in one market and at the same time make a profit at a higher price in another. It’s considered a risk-free revenue trading strategy, but the key here is “continue, “making it almost impossible to run it manually.
The most efficient way to leverage arbitrage opportunities in all markets is to automate processes using software solutions.
Most arbitrage was done manually. Advances in technology today make the process more automated, making the market more efficient. Computerized trading systems monitor price fluctuations every year and run transactions almost simultaneously. As a result, price errors are corrected in seconds, and Arbitrage opportunities disappear.
Profit is needed in the financial world. Arbitrage is a way to earn a steady income every day. But to be able to participate, you have to choose the right software solution. And while most solutions are connected to a limited number of assets or markets for efficiency, they need to understand where is the best place to deploy software solutions for maximum profits.
Arbitrage has existed since marketplaces were first invented and are used in all kinds of markets as trading strategies; price mismatches occur every second. Balance trading is run automatically by a computer, and the revenue is collected from each transaction. It looks like an endless ring to make money infinitely. But traditional markets are related to working hours. At the end of the working day, the exchange will stop trading. Some exchanges are closed even on holidays. It’s time for the profit-making machine to stop. That’s why we need to find a truly global market that doesn’t stop.
Cryptocurrency exchanges are open 24 hours a day, no matter what. There are no weekends or holidays, and transactions occur all over the world at any time. It’s not surprising that cryptocurrencies are known for their high price fluctuations due to these pricing behaviors. Transactions on value changes of 5-10% in the cryptocurrency market are commonplace.
And there’s another thing to consider. Most cryptocurrency exchanges use the so-called Oracle to get pricing data. Due to delays and delays, in most cases, the latest exchange prices are not too up-to-date, quickly creating another Arbitrage opportunity. Cryptocurrency markets are goldmines for arbitrage if they can act quickly and move on year-round.
Arbitrage is looking for price differences on multiple exchanges. Therefore, access to more exchanges at once can not only detect price discrepancies and increase revenue, but also mitigate the risk of liquidity of cryptocurrencies.
I came across PHPtrader, a Swiss-based company that was looking for tools that could help me reach the largest number of exchanges at once. The trading platform they developed uses the unique trading characteristics of cryptocurrency to leverage the Arbitrage opportunities that form across the market.
With PHPtrader, the trader connects to 11 exchanges. Exchanges such as Binance, Bittrex, and Bitfinex are supported. The platform uses libraries to import real-time data such as prices and orders, and then seek to find price differences between multiple market pairs and exchanges. Everything happens automatically.
PHPtrader, an automated trading platform, seems to meet the requirements. Online platforms allow you to set up automated bots to run arbitrage on your behalf.
Choosing a trading platform is not as easy as making the most popular choice. Each platform has its pros and cons, and it is up to the user to balance and choose the platform that best suits the purpose. PHPtrader’s arbitrage bot has the potential to generate income.
If Arbitrage was profitable before cryptocurrency was invented, you will find that open markets such as the cryptocurrency market have introduced more opportunities to cash in price discrepancies. The best traders are taking advantage of it while it continues!