Arbitration on the cryptocurrency market is the purchase of one asset cheaper in one place and immediate (or almost immediate) sale of the same asset in the second place (or even in the same place, recorded in another currency pair).
There are many stock exchanges on the cryptocurrency market, on which the same assets - cryptocurrencies are traded at different prices. Imagine that you saw the opportunity and:
• you bought one cryptocurrency for $ 950 on the stock exchange No. 1,
• you have sent this cryptocurrency to the Stock Exchange No. 2,
• you sold it on the stock exchange No. 2 for $ 1,000,
• Your gross profit is $ 50 (minus the exchange commission, an average of about 0.25% on the stock exchange),
• You have earned net about ~ 45 $.
You can look for arbitrage between different cryptocurrencies on different exchanges on your own or use the available searcher on this page. The search engine has the ability to configure the search settings for your own preferences. With 9 markets (Bitbay, Bittrex, Binance, Poloniex, Kucoin, Okex, Gate.io, Coinroom, Bitfinex, Bitmarket, HitBTC, Hotbit) equals 18473 different cryptocurrency pairs. If you want to calculate each pair yourself, it would take you over 51 hours (10 sec per pair). Here, the calculation of all this takes about 1 second.
The Maltese stock exchange. By May 2018 it was the largest Polish stock exchange, then they moved to Malta. They have been operating since 2014, they allow trading in zlotys, euros, dollars and bitcoins. They have relatively few cryptocurrencies in their arsenal, but there are very good arbitrage opportunities with them. The commission is mobile and depends on several factors (activity and type of order), the maximum commission will not exceed 0.43%. Deposit speed - average. Payout speed - average. Bitbay is the must have for arbitrage player.
The China Stock Exchange, which also moved to Malta. One of the largest stock exchanges, a large number of cryptocurrencies, no currency FIAT, but USDT is available (USD Tether - imitating the dollar). You can trade with USDT, BTC, ETH and BNB (token created by Binance). Very fast graphical interface. An interesting fact is the possibility of collecting commission in BNB, the commission is lower by half and amounts to only 0.1%, which gives one of the lowest commissions among the stock exchanges. Deposit speed - fast. Payout speed - medium fast. Mandatory for arbitrage player.
The American stock exchange, one of the largest in the world. The offer has a lot of cryptocurrencies, you can trade in USDT, USD, BTC and ETH. An interesting fact is that they have their own cryptocurrency TUSD (TrueUSD) imitating USD as well as USDT. Pretty low commission - 0.25%. Deposit rate - average. Payout speed - fast. Bittrex is the must have for arbitrage player.
The American stock exchange, the owner is indirectly Goldman Sachs. A wide range of cryptocurrencies, trading possible in pairs with BTC, ETH, XMR and USDT. Very poor customer support, you have to wait for a long answer. Pretty low commission - 0.25%. Deposit speed - slow. Payout speed - ok.
The stock exchange is from Hong Kong. A large number of cryptocurrencies, without FIAT, trading in pairs with BTC, ETH, NEO, USDT and KCS (own token, similar to Binance BNB). Very clear and eye-friendly interface. The commission is very low 0.1%. Deposit speed - very fast. Payout speed - good.
The China Stock Exchange. A large number of cryptocurrencies, available dollars, trade in pairs with BTC, ETH, USDT and OKB (own token, similar to Binance BNB). The possibility of trading on futures. The commission is mobile - not exceeding 0.2%. Deposit speed -. Payout speed -.
Stock market registered in the USA. A large number of cryptocurrencies, trading in pairs with BTC, ETH, USDT and QTUM. Poor customer service. The commission is mobile - not exceeding 0.2% maximum. Deposit speed -. Payout speed -.
Exchange registered in Hong Kong. Dozens of cryptocurrences listed in pairs for EUR, USD, GBP, JPY, ETH and BTC. Very clear graphical interface. Mobile commision- not exceeding 0.2% maximum. Deposit speed -. Payout speed -.
NEW CRYPTOCURRENCIES MARKETS WILL BE ADDED SOON.
• you can define the percentage above which the search results will be displayed,
• you can define an alarm expressed in percentage, above which the audible alarm will signal an interesting opportunity on the market,
• you can specify the frequency of calculating results,
• you can define a default currency,
• you can select / exclude the exchanges that interest you,
• you can choose / exclude interesting connections between stock exchanges, eg define ignoring arbitrage search from Stock Exchange no. 1 to the Stock Exchange no. 2. This is very useful when you do not have any free funds on Stock Exchange no. 1, but you have free funds on the Stock Exchange no. 2. The algorithm will search for arbitrage from Stock Exchange No. 2 on stock exchange no. 1, but in the second direction from Stock Exchange No. 1 on Exchange 2, arbitration will be ignored,
• you can exclude specific cryptocurrency pairs,
• you can exclude buying / selling currencies (eg some FIATs) from a select exchange,
• you can exclude a select cryptocurrency from a specific exchange from purchase / sale offers,
• you can exclude a select cryptocurrency from all exchanges,
• you can search for a select cryptocurrency on all exchanges and display comparisons between them,
• you can go with one click directly to the cryptocurrency pair on select stock exchange,
• you can automatically exclude all cryptocurrencies from searches that are not active (e.g. blocked deposits / withdrawals on them),
• the search engine displays the course of the select cryptocurrency in its native currency and in the currency of FIAT (PLN, EUR, USD).
The biggest risk is the transfer time of cryptocurrencies between Stock Exchanges, the time in which the price of assets may change to the disadvantage. You must pay attention to two things:
• transfer time of a select cryptocurrency between stock exchanges, you can check this by Block Explorer of a select cryptocurrency serves, which displays how quickly transactions are confirmed (by transaction blocks),
• number of confirmations (number of transaction blocks), which is required for a select Stock Exchange to confirm and post the funds in the account.
The shorter the time, the better, on average, cryptocurrency transmission time ranges from a few to a dozen or so minutes.