As we emerge from last year’s prolonged bear market, crypto owners are considering new investment approaches. In the current situation, one might consider arbitrage trading.
The ABCs of Crypto Arbitrage
What’s the general idea?
Crypto arbitrage is an investment strategy that capitalizes on short windows of time when a digital currency is available on different exchanges at different prices at the same time.
What causes these price differences?
Temporary price differences can have different causes, such as differences in trading volume and liquidity between larger and smaller exchanges.
How do crypto owners make money with arbitrage?
Essentially, arbitrage consists of buying a product at the cheapest price available in one market and then selling it elsewhere at a higher price. This can be done manually, but for crypto arbitrage, a bot is usually the best choice.
An algorithm connected to multiple exchanges simultaneously monitors hundreds of cryptocurrencies 24/7, looking for price differences. When it finds a discrepancy, it buys the coin on the exchange where the price is lowest and sells it on the exchange where the price is highest in a split second to make a profit.
These bots are able to execute a large amount of arbitrage trades simultaneously on your behalf at high speed to maximize your revenue potential.
Arbitrage versus other strategies
Compared to other trading strategies, crypto arbitrage is considered low-risk, mainly because you don’t open positions on exchanges like you would with swing trading, for example. Regardless of which way prices move, you can still make money from price differentials.
Also, unlike simple HODLing, arbitrage allows you to make money in a downturn without having to wait for the market to recover.
The benefits of arbitrage
● The risk is low as a sudden market change cannot wipe out your profits. Arbitrage is therefore a way of hedging against falling prices.
● Profits are independent of the current market situation
● Automated arbitrage requires no financial knowledge or effort as there is no need to spend time analyzing the market, developing or implementing strategies.
profitability and safety
Good profitability and safety are important in arbitrage trading. In both areas, a crypto arbitrage platform particularly stands out: ArbiSmartfounded in 2019, is a financial services company with full EU approval operates and enjoys an excellent reputation as a trustworthy, transparent steward of crypto assets.
ArbiSmart supports 30 different FIAT and cryptocurrencies, from Euros and US Dollars to Bitcoin and Dogecoin, and offers a wide range of arbitrage investment plans, freezing funds and trading them in crypto arbitrage on your behalf.
The contract terms of the plans can be short-term of one or three months, or longer-term of 18 months, 2, 3 or 5 years, with the profit percentage increasing with the length of the plan chosen.
The exact amount you will earn depends on yours Bank balance away. This in turn is based on the amount of RBIS you hold, the in-house token. So more RBIS means higher arbitrage profit on the investment plan amounts in USD, XRP, ETH or any other supported currency. You can also open a balance in RBIS to increase your APY.
Here it goes ArbiSmart.
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