Arbitrage still relevant – Make money no matter which way prices move?
Arbitrage still relevant nowadays since we are always searching for comfortable and easy ways to increase our capital. With the start of crypto ICO’s and altcoins peoples rushed in December 2017 purchase coins at their highest price.
Likewise, investors who purchased coins for pennies since launch sold their holdings and literally made unreal returns. That’s how the market started to correct itself, with Bitcoin, Ethereum and altcoins losing in value 60%.
Since February 2018 when the crypto market started to feel the hit various methods where use to profit from the volatility. Traders and investors shifted on using trading robots and algorithm calculators to improve their returns. Ranked as the most reliable robot in February was ArbScan developed by crypto wizards pushed the boundaries.
Having such tools to scan the markets and show users when to purchase low and sell high saved allot of time and effort.
Financial growth becomes much easier when using robots!
WRONG!!! Remember, arbitrage does not guarantee results, robots are running algorithms and missing out the fundamental part. Take news for example, articles can be publish claiming that bitcoin and crypto scam alert pushing markets down.
Robots running arbitrage will not identify the news and will fail to carry the operation in its user favor. What’s the point of using them? Everything mankind created requires some sort of maintenance and this robot is not exception from that rule.
Banks, spread betting, forex and stock markets frequently uses arbitrage
Before robots, other crypto enthusiast where analyzing the various exchanges such as: Binance, Bitstamp, Kucoin and many, many others. Same like in forex or stock market they had different quotes or miss-pricing. (exp: binance 1 bitcoin = $10.000, kucoin 1 bitcoin = $10.020 and bit stamp 1 bitcoin = $9990). Crypto enthusiasts started apply arbitrage purchasing coins at lower prices and move them from various exchanges starting with the lowest.
Other techniques where applied. Traders took it to a new level since moving coins from one exchange to another carried fees witch by that time were high. Carrying arbitrage on one exchange can reduce the amount of time spent trading, easy to apply on most exchanges. Exp. Price of verge vs bitcoin can look like 0.00000206 and you want to buy at 0.00000200 the trade will execute as pending. Only when that price hits 0.00000200 the trade will be filled, same operation applies for selling coins.
Overall using arbitrage in daily trades can lead to financial growth and it is safe to assume you can make money no matter which direction the prices will take.