Cryptocurrency Arbitrage Trading Robot – Let Your Bitcoins Work for You!
Want to rest while your bitcoins work for you?
We are introducing CryptoArbitrager, a trading robot that allows you to profit from exchange rate differences between bitcoin and litecoin.
How does it work?
At cryptocurrency exchanges prices of bitcoin and litecoin rise and fall depending on many factors: laws, new vulnerabilities, politicians’ statements, rumors, and so on.
All this is very unpredictable, and will have different impacts on the rates. However, when all cryptocurrencies in general are becoming attractive for investment, prices are rising, and when demand declines—they fall. So there is cointegration and interdependence between the courses.
Key components for successful arbitrage:
- Understanding total cost of entering and exiting a position
- Being able to correctly evaluate an opportunity
Automate the Process !
I automated the process. I’m a software developer. I realized the bitcoin markets moved too fast for me to compare two order books and execute a trade. Even with a spreadsheet doing most of the work it took about a minute or two to evaluate arbitrage profitability.
Most (all?) bitcoin exchanges have APIs (a way for computers to talk to each other) and I was able to write a piece of software (arbitrage bot) that could analyze and execute arbitrage in less than ten seconds between two markets.
When cointegration appears, the rate of one cryptocurrency may respond differently to unpredictable events, but on the course of another cryptocurrency it will stay in a certain range, without deviating too much. This creates predictability, which means—a profitable opportunity.
Once there is a deviation, CryptoArbitrager automatically buys bitcoin and sells short litecoin. When courses come back into balance, the position is closed, and you get a profit. And vice versa. And again and again, 24 hours a day, 7 days a week . . . While you sip your margarita.
With my software doing all the work arbitrage was a dream come true. I did spend some days at the beach and earn a nice 7% return for the day.
I am so happy to share this with You. Give it a try if you are looking to investe in some new opportunities. leave your comments bellow.