The ArbiSwap platform has been great at finding arbitrage opportunities in the few months it has been introduced to the public. Just 4 hours ago the alert below was emailed to all our members for ticker ADX/BTC informing them of an arbitrage deal with a potential profit of 20.484%.

Real-time Arbitrage Alert from ArbiSwap

At the time of occurrence, ADX/BTC was trading at $1.19 on Bittrex and $1.47 on Binance. Now that’s a huge spread and an opportunity worth taking if you gave the alert your undivided attention! Right? While this opportunity only lasted 45 minutes, all members that acted on this alert have made a profit anywhere from 15% to 28% on their investment. Simple Put!!! Anyone with funds on Bittrex would have easily been able to buy it, transfer it to Binance and then sell it for a very nice profit! Also, volume was plentiful; making the trade very liquid.

Why do arbitrage opportunities occur and how common are they?

Arbitrage opportunities usually occur during large transactions on one exchange with that transaction not registering across other exchanges in a timely manner. These irregularities can occur for short durations or longer durations, (sometimes seen over the course of hours). They usually happen during the release of major news or because institutions are pushing up the price in a controlled manner. Because exchanges have different amounts of

coins being bought and sold in their order books, the prices between exchanges will usually start spreading apart from each other as tens of thousands or even millions of dollars worth of orders begin to be filled. It is quite common to find many arbitrage deals at the beginning of bull runs. This occurred during the last Crypto bull run from October-to- December. They usually happen when whales or institutions are done accumulating and start pumping more money into the coins at a much faster rate.

Common Altcoin Patterns that happen in Bull Markets

On average most altcoins were pumped anywhere from 5x to 10x their price during the nice run we had last winter. In some cases we even seen some coins being pumped up 100x or more. Most altcoins charts displayed a cup and handle pattern which usually has more than a few major spikes. The majority of the price gains and arbitrage opportunities occurred as coins begin breaking out above major trend lines and resistance points as shown in the

image above.

Is volume too low for many people to act on the same arbitrage opportunity? Wouldn’t one whale or institution be able take up all the volume by himself?

Each arbitrage occurrence is different because they happen for different reasons. Some arbitrage opportunities have plenty of volume for hundreds of people to profit while others may have enough for thousands of people to profit. It all depends on the amount of volume being traded. Millions of dollars can flow into coins in a matter of minutes, let me show you how. Using

the ADX/BTC arbitrage opportunity that occurred today and mentioned above as an example… $51,523,079 in volume was traded over the last 24 hours for ADX/BTC on Binance alone and most of the volume was traded during the occurrence!

Arbitrage Opportunities can have Millions of Dollars worth of Volume Traded in Minutes!

That should open anyone’s eyes to the amount of money that can be pumped into coins during these occurrences. This clarifies why many people could make a ton of money acting on the same arbitrage alert. It is a misconception that there is not enough volume or that one whale could take up all of the opportunity by themselves. That would be very hard to do and manage even with a trading bot using the example above. As mention during the introductory post of our arbitrage platform for cryptocurrency, there are a few steps people can take to make sure the arbitrage opportunity is worth taking. It depends on personal factors as well as trading conditions, which can be determined very quickly by viewing volume and other data from exchanges.

How to arbitrage cryptocurrency like a pro?

Although it is good to hold long-term positions it would also benefit cryptocurrency traders to have money on the sidelines. Day-traders are always ready to make a profit in the market. They usually have money on various exchanges ready to be traded at any given moment. This alone will give you an advantage over others because there may not be enough time to transfer funds to the exchange you need to buy a coin. Therefore, having money available on your chosen exchanges at any given time is the beginning of the best strategy to capitalize on these exceptional opportunities. Once you see an arbitrage alert, be ready to accumulate as many coins as you desire on the exchange that has the lowest selling price while paying attention to the price on the other exchange that has the highest selling price. If you are able to accumulate the amount you desire while the spread is still far apart you are doing awesome. The last step involves transferring your coins to the higher cost exchange and selling it as fast as possible at the higher rate.

Disclaimer regarding investment decisions and trading

Decisions to buy, sell, hold or trade in currencies, securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Any trading in securities or other investments involves a risk of substantial losses. The practice of “Day Trading” involves particularly high risks and can cause you to lose substantial sums of money. Before undertaking any trading program, you should consult a qualified financial professional. Please consider carefully whether such trading is suitable for you in light of your financial condition and ability to bear financial risks. Under no circumstances shall we be liable for any loss or damage you or anyone else incurs as a result of any security, currency, trading or investment activity that you or anyone else engages in based on any information or material you receive through ArbiSwap or our Services.

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