Arbitrage is principally described as the buying and selling of items in respect to the inequity in prices. It is normally used by traders who take advantage of different prices of the same goods in different geographical locations. The profit made is from the price difference. The arbitrage traders buy goods from cheaper places and sell the goods in regions with higher prices and keep the extra money as their profit.

1. Blockchain Technologies(BTCOE704A)
Continuous Assesment-1
(Crypto Arbitrage)
Yash Sonawane
46158
Deogiri Institute of Engineering and Management
Studies, Aurangabad

2. Crypto arbitrage
Buying and selling of assets
Finding and trading assets that cost different markets
Gain profit from a price difference between two markets
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3. Why are crypto prices
different on exchanges
Listed prices can vary due to each exchanges fees,
spreads, trade volume and liquidity in order book at any
given time
One of the combination of these factors can result in
significant change to crypto prices on exchange
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4. The two most common methods to perform crypto arbitrage between exchanges are between 2 exchanges (also known as “Spatial Arbitrage”) and between more
than two exchanges (also known as ‘Triangular Arbitrage”)
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Cryptocurrency arbitrage strategies

5. Triangular Arbitrage
• Benefits from price difference between 3 assets
• An example of a triangular arbitrage trade is as follows.
1. Purchase a crypto asset (e.g. Bitcoin)
2. Trade the Bitcoin for a second asset (e.g. Ethereum)
3. Trade the Ethereum for a third asset (e.g. Litecoin)
4. Trade the Litecoin back to Bitcoin
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6. Pros and Cons of arbitrage trading
Pros
• Low risk crypto strategy for advanced traders
• Automatic trading bots
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Cons
• Requires level of technical knowledge
• Opportunities don’t last long on the market
• Slow transfer speed
• Need to open account across multiple
cryptocurrency tracking platforms

7. Crypto arbitrage
bots ?
Tools available for traders
Automates the process of finding and trading arbitrage
opportunities
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8. 8
Benefits using arbitrage
bots
Popular cryptocurrency
arbitrage bots
• Instant market and exchange analysis
• Trade multiple exchanges worldwide and
24/7
• Execute tr
• Remove trading stressades near-instantly
• Cut losses early
• Bitsgap
• Cryptohopper
• Gimmer

9. Thank you