When you buy BTC or any other currency on an exchange where the price is lower, you can make a profit by selling on an exchange where the price is higher.
While the overall idea is great, the best opportunities don't last long. You need to be able to quickly monitor the markets and capitalize on the changes – a manual approach of monitoring the markets for arbitrage takes too much time and in many ways not practical.
arbitragepros makes it easier to profit. Thanks to an automated and AI-powered system, trades can be made in just one click!
Only you have access to your funds – securely held at the exchange and connected by API keys, arbitragepros does not have any access to your money.
API enables the platform to execute trades and build your portfolio. The API has been designed with security in mind, all information is kept entirely confidentially.
The arbitrage is the simultaneous purchase and sale of a coin to profit from an imbalance in the price. It is a combination of trades that profit by exploiting the price difference of the identical trading pair between two or more crypto exchanges.
The price on the exchanges differs due to the natural effect of decentralization and weak development of the market in general. Due to the market inefficiency and volatility, the arbitrage in cryptocurrency trading occurs more often compared to other financial markets
The primary challenges of the traditional arbitrage in cryptocurrency trading are the reaction, the need to quickly transfer funds from one exchange to another, and of course, withdrawal fees.
The arbitragepros has developed a solution which allows you to trade on both exchanges simultaneously so you can take that price advantage in just one click.
There is no wizardry behind the arbitragepros arbitrage, but to run it requires you to split your balances between exchanges. For instance: in trading BTC / USD you want to send your Bitcoin to exchange with a historically higher price; and your USD where the price is lower (we will use it to purchase Bitcoin back)
Our platform examines order books of every supported exchange and compare prices of all available trading pairs. When the price slippage is detected we add a new entry with estimated profit results and the option to complete instant trade.
The system is always comparing your available trading balance with the price and volumes in exchange order book. This allows us to show the precise number of how much you will make out of your existent funds.
Running arbitrage with such setup eliminated the most severe problems of the classical arbitrage method where it is challenging to cope with transaction speed and natural reaction to the dynamic environment.
And of course, you can check the prices between exchanges manually but it would take way more time than checking them on arbitragepros.
No, the arbitragepros arbitrage service will not trade for you while you are away. You need to confirm the arbitrage deal on the interface page, and only then the system will fill two simultaneous orders to buy and sell your coin.
For automated trading, while you are offline we offer a trading bot which generates profit in swinging and fluctuating market. You can learn more about it, here.
The arbitrage with arbitragepros seems like a very simple and straightforward tool to use, but in reality, this method can be fully utilized by a large trading accounts only.
The real profit from the arbitrage trading depends on the commission the exchange is taking from you for withdrawal. In general, you want to get at least 2% of the difference from each arbitrage trade you make.
Let's drop it in a real case for better understanding. We have used an account worth of 10,000 USD to complete the arbitrage deal between Bitfinex and Kraken exchanges (half funds in fiat and the other half in Bitcoin). The average gain from the trade was 2% and it has given us a 100$ of income.
When we initiate a fund withdrawal, the Bitfinex takes a fixed 40$ as a fee which reduced our real net gain to 60$. Now we need to send all of our money back to Kraken and purchased Bitcoin to Bitfinex in order to repeat the arbitrage transaction. This is why this method is best for the accounts with value above 10,000 USD.
To complete your first arbitrage deal:
This is just a quick instruction on how to get started, we strongly advise to check all other questions and guidelines for a full understanding of how the service works exactly.
When you are ready to execute an arbitrage deal, click the Trade button.
The system will send two simultaneous requests to your exchange accounts. The first one will go to buying exchange to purchase the coin. And the second will be going to the selling exchange to sell it.
When both of your limit orders are complete, you will have the following: All your fiat plus net profit on the selling exchange; and all your coins on the buying exchange.
The exchange fee for every user can be different: there are some coins which provide a discount for trading fees, or maybe you are a market maker enjoying low fee structure - we are not able to know precisely what fee is associated with your exchange account.
Nevertheless, we include a standard 0.25% one-sided transaction fee into profit calculation (a single order fee). This allows us to prevent you from unprofitable deals and filter out small price gaps.
Great! Now if you are planning to repeat the same arbitrage transaction, you will need to rebalance your exchange accounts. It means you need to send bought crypto over to the selling exchange, and fiat back to the buying exchange.
The entire process of rebalancing your accounts may take up to a week depending on the exchange. It differs from your local legislation with bank accounts, withdrawal methods, and exchange's terms and conditions.
For more details about this part, please check the previous frequently asked question: How much I can earn? Does arbitragepros arbitrage work for everyone?
Yes, but not with your real accounts. Arbitrage is a sophisticated tool for experienced users which requires you to know exactly what you are doing. Thus we offer this functionality only for paid Advanced and Pro packages.
But you can try Arbitrage and many other features in our demo mode. It's important for us that you understand how this service works, so we advise you to try it first in demo without risking real money.
To do so:
You can switch back at any time the same way.
There are also other ways to use arbitragepros arbitrage service.
If you are not interested in buying the coin back and want to generate profit in fiat only, then you can use our service to general monitoring to see where the price slippage is happening.
The other way is to use arbitragepros arbitrage as a tool to rebalance your portfolio between exchanges with the same or close prices. During the strong market movements, one exchange may fall behind and only after a minute or hour catch it. And this is exactly where you can take advantage and make a balanced swap with our tool.
