What is arbitrage?
It is a purchase of a monetary unit on an exchange with a low rate and a sale on another with a higher rate. The scheme can be repeated as long as it is financially profitable.
The easiest scheme of arbitrage between cryptocurrency exchanges is the following:
- Find a coin or a token with the rate lower on exchange A than on exchange B;
- Buy the token on exchange A;
- Sell it on exchange B;
- Profit from a price discrepancy.
You exploit the fact that each exchange has its own rate indicators depending on a set of objective parameters such as trading volumes, major deals, etc. The spread can reach 10%, which provides you with a chance to make a profit almost immediately.
The feature of cryptocurrency trading is that the market is quite young, and price discrepancies are often high. Thus, it’s much easier to take advantage of the odds here, than on the traditional markets.
Why is it profitable to trade with the help of Coinmatics?
Quality information is essential for efficient trading. The Coinmatics platform provides you with an opportunity to implement manual arbitrage within the framework of the objective assessment system and complete information on the main exchanges and cryptocurrencies.