Arbitration of crypto-currencies. Earnings on the difference between the cost of the same asset on different trading floors
Initially, mankind wasa limited range of opportunities to make a living: gathering, hunting, primitive farming. But as the society developed, new tools became available. One of them is arbitration of crypto-currencies. At first glance, it may seem like a usual kind of speculation. But what can you learn if you study it in more detail?
When cryptographic money appeared, thenThe exchanges offering their services for their purchase, sale and exchange began to develop. Moreover, these operations can be performed both between virtual currencies (for example, bitcoin for lightcoin) and conventional traditional ones, like rubles, hryvnia, dollars, euro. On these exchanges, the rate is more or less similar, but, nevertheless, the differences can reach several percent.
Earning in the arbitrage of crypto currency meanspurchase at a low rate, and the realization of a higher one. Profit is the size of the difference. By the way, it is called arbitration. To earn this way, you do not need to have special knowledge or skills. It's enough just to constantly monitor the value of the courses on the main exchanges.
What should I look for?
Here is a short list:
- Actually, the course itself.
- The amount of commission for input or output of fiat. Here you should step back and make a little explanation. Crypto-currencies are usually entered without commission. At withdrawal, a small fee is charged. Therefore, in order to avoid negative consequences, you should follow the Fiat.
- Know the list of codes of exchange offices. We will talk about this later.
Where to deploy activities?
On what platforms can you master the inter-exchangearbitration crypto-currency? It should be noted that there is a fairly wide potential field of work. But within the framework of the article only the most popular ones will be listed:
- BTC-E. This is perhaps the most popular Russian-language exchange. Its feature is, as a rule, a lower rate than on other trading floors.
- EXMO. The exchange, where the trade goes on a large scale, there is a significant difference between the rate of sale and purchase, orders are quickly executed. It is quite good for beginners to earn initial capital.
- YoBit. A wide range of Crypto-currency, there are bonus distributions. It is considered the leader of the process of adding new positions.
- Livecoin. Quite an extensive Russian-language exchange.
- Btc-trade. Ukrainian project, works with hryvnia. It has good courses, it is much more profitable to work with it than through exchangers.
On these exchanges, it is possible to monitor real-time crypto-currency rates and to buy / sell them when an advantageous option arises.
How to earn?
The most optimal way is to transferfunds between exchanges using special codes. The positive thing is that for their use the commission is not charged, and the operations are carried out instantly.
The advantage of codes is that they can workas with crypto-currencies, and with traditional money resources. It should also be understood that they are disposable. Therefore, by activating the code, a person will say goodbye to the amount on one's own account. It should be noted that the earnings in the exchangers can have their pitfalls, for example, work is not automatic but manual. Therefore, such a service for arbitrage crypto currency is undesirable in use.
Let's look at the situation, which,potentially, can take place. Suppose that on EXMO bitcoin costs 400 thousand rubles. And on the BTC-E they are traded for 396 000. What is the procedure? Initially, you need to enter funds for BTC-E and buy one bitcoin. After that, it is translated into EXMO using the code. At the same time, there is a commission of 0.001 PTS per move, as well as 0.2% for buying and selling. All that remains after the sale and there is profit. In our case, it will be something like two thousand rubles. And then the most interesting begins - directly the arbitration of the crypto currency.
Initially, you need to find the best way to returntheir money on BTC-E. After that, the process is repeated. It should be noted that there may not be lucrative offers for a certain point in time. Therefore, it is necessary to monitor real-time crypto-currency rates in order to make money at the right time.
To fill your free time, you can tradecurrency directly on the stock exchange. This is a classical arbitration scheme. It is convenient due to long-term use and is the most popular principle of interaction.
A little more about the classical scheme
If there is no desire to start trading without investingof their means, then the initial capital can be obtained from the sites that it is distributed free of charge. To do this, it is enough to register, work a bit, and it will be available in a couple of days. Direct profit is formed due to the inefficiency of the system of implementation and aggregation of price quotes. We can confidently say that in the classical scheme there are minimal risks. But they do exist, you should not forget about it.
We should also mention the minimum requirements to successfully start here (you can, of course, lower the bar, but then the effect will be minimal). So, this is:
- The number of funds for arbitration is more than six thousand rubles.
- Commissions for transactions, as well as transfers between exchanges, cost less than the profits received.
- Work in the inactive period of bidding to earn up to a significant price change.
- It is desirable that the traded pair differ by more than two percent. The example given above, where it was only 1%, should not be considered as a practical guide to action.
Static arbitrage earnings
This method requires analyzing the currentthe state of the market, where the participant acquires the most promising asset in terms of growth. There is a risk of making the wrong choice, which will lead to financial losses. In general, this approach has much in common with trade strategies, which rely on the calculation of possible profits. The main task in this process is to determine the patterns and use them for yourself. How such a crypto currency arbitrage is implemented in practice?
To start, you need to select severaldependent instruments, having formed its trading portfolio. Then you should determine where there is an underestimation, and where the revaluation. And we buy what is profitable for us. The effectiveness of such an approach is comparatively lower than when working on a classical scheme. But the strategy is more flexible. Often the decision in this case is reduced to the formation of a neutral portfolio, the price chart of which moves without strong leaps. Let's look at a small example.
Suppose the bet was made on a statisticalarbitration of the pair - lightcoin and bitcoin. There is a high correlation between them. In this case, there is a regularity - one currency goes up, the other down. Then they change places. Our task is to buy a catching currency and sell the lead. At the moment of their contact, close the deal. If there is an assumption that a currency parity will be established, this can be realized without significant risk. But, alas, here there is a minus - the dependence is impermanent and it will not always work.
Using automation tools
All of the above assumes that the actions are performed by a person. But surely it will be so? No, a special program for arbitrage on the exchange of crypto-currencies can come to the rescue.
And automation tools are performed ina fairly wide range. It can be a bot for arbitrage of the crypto currency trading, and a program that will only inform about the changes and / or the achievement of a certain level of quotations, and all decisions will be for the person. The first option sounds most attractive. But if the automation could absolutely trade, then it would quietly oust all the people-brokers and traders. The probability of losing is great. Therefore, the most suitable option is a program with information functions. And rely on your mind.