Cryptocurrency opens up many new possibilities to connect with blockchain technology. With technologies such as smart contracts, distributed ledgers, and virtual currency virtualization, it is not surprising that there are more than 4,000 cryptocurrencies (or alternative coins) in existence today. At the same time, the numbers of crypto exchanges are also increasing. Coinbase, Kraken, Bitfinex, Bittrex, and Poloniex are just a few of the many cryptocurrency exchanges available. These websites provide application programming interfaces (APIs) that allow users to operate programmatically.
Due to the presence of these APIs, transactions due to different market inefficiencies can be activated in the cryptocurrency market. This method, called arbitrage trading, has been used by banks and financial institutions for many years. Unfortunately, accessing the HA API often requires significant financial investments and is usually only accessible to banks and financial institutions such as investment companies.
Crypto Trading Bot
Crypto arbitrage bots are a set of programmable commands that automatically execute transactions without human intervention. There are several main components of an auto trading bot, regardless of language and structure.
If you can build a strategy that allows traders to monetize multiple times, they don't have to spend hours communicating with the platform to do the same thing over and over again. A crypto arbitrage bot can make thousands of decisions, and the human brain can think of many things. In algorithmic or bot trading, there is no sentiment while consistently implementing the same strategy over time.
Crypto arbitration strategy
Before continuing to look at how cryptocurrency arbitrage works, traders should come up with a good risk and reward trading strategy and money management. Then compare several options to reduce your risk. For highly volatile pairs, the trading volume should be reduced so that market uncertainty does not affect the investment. To use a moderation strategy, traders must follow a few basic steps to make the automation profitable.
Can arbitration strategies be applied successfully to cryptocurrency markets?
Crypto auto trading bot is an automated software that helps you buy and sell cryptocurrencies promptly. The main purpose of this software is to increase profits and reduce losses and risks. With this app, you can manage all your cryptocurrency exchange accounts in one place. Many of these programs allow you to easily trade on Ethereum, Litecoin, Bitcoin (BTC), etc.
Arbitrage bot trading history
Currency difference is the buying and selling of currency pairs from different brokers to take advantage of different spreads. The cash spread is defined as the difference between an asset's bid and the required price. "Offer" means the fact that the buyer offers to pay for a particular asset, and "Ask" means the selling price of the asset provided by the seller. The size of a currency spread is often used to measure the liquidity and efficiency of a market.
The higher the currency spread, the less efficient the market, and the lower the currency spread, the more efficient the market. In the fiat currency market, banks often use arbitration to generate revenue by exploiting the price difference between multiple currency pairs. Some bots trade in traditional commodity markets such as Bloomberg and NASDAQ, but are only available to investment companies and brokers. These general market robots need access to market data exchange. These exchange data are generally not available to non-professionals. The transparent nature of the blockchain gives cryptocurrency traders access to the order book on the stock exchange and creates a trading bot that works with this information. Blockchain is a decentralized ledger with all transactions hosted by network users and miners. As a result, there are already many bots targeting cryptocurrency exchanges.
The transparent nature of the blockchain gives cryptocurrency traders access to the order book on the stock exchange and creates a trading bot that works with this information. Blockchain is a decentralized ledger with all transactions hosted by network users and miners.
Crypto Bot arbitrage trading types
There are different types of crypto exchanges, so you have two types of arbitrage strategies to take advantage of market inefficiencies. These are intra-market and inter-market "exchange" arbitration. The former is when you run an arbitration sequence within an exchange and the latter means running an arbitration sequence on another exchange. Each has its strengths and challenges, which we will explain below.
The first method, the cross-exchange difference, studies the prices of cryptocurrencies on various exchanges and detects price discrepancies between them. If price deviations are found, lower-priced cryptocurrencies are bought on one exchange and then transferred and sold on another. By carrying out such arbitration on various exchanges, cryptocurrency prices should be further stabilized with a certain market value, and the arbitrator can obtain profits directly related to the perceived price difference.
The second type of arbitration, similar to the first, uses a price spread between two exchanges. If the spread is large enough for the Blackbird trading bot to cover the short-selling and buying fees on those two exchanges, the short-selling will be done on the higher-priced exchange and the lower price.
If the two prices eventually match, the position is calculated (Sold while going long and bought while going short). Net profit is mainly half of the negative commission transaction fee multiplied by the cryptocurrency sold. This method claims to be market neutral because consumers are not exposed to the risks associated with market fluctuations. Also, there is no need to transfer assets between different exchanges.
phpTrader arbitrage bot
phpTrader Trading Bot is an automated cryptocurrency trading platform that monitors over 1000 crypto pairs across eleven key global exchanges which include Binance, Bitfinex, Kraken, Huobi Global, and the rest. phpTrader’s main goal is to make it easy for customers to trade crypto coins. With PHP arbitrage bot, crypto trading is easier than ever. This is especially true for beginners who need to learn to use technology and learn how to best manage their emotions to benefit from trading. And even after such efforts, many are not successful traders.
To address these challenges, phpTrader had to introduce arbitration bots that could innovate trading, automate and streamline the trading process. This way, even beginners can benefit from the market without stress. If the price of one currency on one exchange is lower than the price of another, phpTrader's trading bot will automatically analyze thousands of transactions to help the user to benefit from the price differences across multiple exchanges.
Besides this, the phpTrader’s arbitrage bot helps you to explore a list of present arbitrations and future arbitrations for opportunities. The platform's simple automated interface allows users to easily access all arbitration options for a particular currency pair across multiple exchanges.
Arbitrage Bot is an advanced AGI technology that allows bots to detect 99% of variables and reduce waste. Therefore, it can provide a stable return with less risk of loss. Our robots are a state-of-the-art technology that allows you to directly evaluate and trade a variety of processes and variables, improve currency trading efficiency, and keep your investment safe through 24/7 automatic intelligent trading.
Also, as a business that wants to create an environment where experienced and inexpensive people can invest in the market price gap, it makes sense to find the cryptocurrency price difference from others. So, the bot can buy at a lower price in one market and sell at a higher price in another cryptocurrency market.
The phpTrader’s next-generation platform provides users with unparalleled speed and stability, while the blockchain ensures transparency and security. Also, the fast data center system execution of phpTrader allows you to estimate spreads and conduct revenue-generating transactions in real-time to generate revenue as soon as opportunities arise in the cryptocurrency market.
phpTrader’s arbitrage bot offers market competitiveness
As the cryptocurrency market grows, state-of-the-art technology advances, and many trading bots benefit from repeat orders. We are already familiar with similar competitive robots with advanced computing power, system logic, and algorithms. The bot is a highly competitive arbitration solution. It equally offers comprehensive platform services like Ai analysis for consumer management, portfolio and volume tracking, statistics, behind-the-scenes testing, and USDP fixed ticket management to increase user satisfaction.
The company works hard to offer crypto investors an easy way to capitalize on market opportunities, reduce risk exposure and maximize profits. The team strives to provide professional and personal advice notwithstanding the level of experience of the trader. In this way, crypto traders and investors can drive innovation with phpTrader technology and continue to expand boundaries while optimizing their revenue potential. The arbitrage bot assists the bot to achieve transactions, so the client doesn't always need to be in front of the screen.
phpTrader has confirmed its relocation to the UK due to its expansion plans. The Swiss phpTrader office will remain a subsidiary. phpTrader will be building their first new home in London, UK since their debut in 2017. A conference room with infrastructure for video conferencing can be used by employees as a remote workplace. The transfer of phpTrader headquarters in the UK was deemed necessary to expand their global presence and staff to help broaden global markets and operations.
phpTrader has also joined the executives of CryptoUK, a self-regulated British exchange association representing the virtual asset industry. phpTrader plans to expand its listed for-profit platform to UK institutions and private investors by the middle of 2021. This platform operates under the supervision of the Financial Services Authority (FCA). According to phpTrader (HUN TRex) CEO, " phpTrader works under the philosophy of a better environment to create better technological competitiveness to provide a comfortable working environment for their employees and expand their business growth.