Cryptocurrency Arbitrage is buying low and selling high between exchanges within a short span of time. With so many inefficiencies present in the crypto market, there is an unlimited scope of arbitrage opportunities. Arbitrage is a less risky and more logical way of increasing your investment value rather than just holding your coins especially after knowing the fact that cryptocurrency is highly susceptible to time-volatility.
Why KoinKnight?
KoinKnight enables crypto enthusiastic users to have an edge on others by showing such arbitrage opportunities and helps in decision making all in real-time being quickest among all. Some of the distinctive features of KoinKnight are —
We have specific algorithms dedicated to finding four different types of arbitrages. The arbitrages are -
Direct Arbitrage — It is the simplest form of arbitrage where one buy a coin from one exchange at low and sell at high in another exchange. For example, in the image shown below —
Triangular Arbitrage — It is little complex and little more time consuming than the direct arbitrage since it involves 3 exchanges. This tool is used generally where users see arbitrage between two exchange but they do not have money at the starting exchange. Let’s take an example — In above direct arbitrage, there is an arbitrage between Kucoin and EXMO exchanges. But the user does not have any money in Kucoin to start the arbitrage. But still, he/she want to complete the arbitrage to earn a profit. Let’s say, there is some money at Huobi and there is currently no profitable arbitrages originating from it currently. So basically arbitrage is present between Kucoin and EXMO but money is at Huobi. This is where triangular arbitrage can come to play. A user can search for arbitrage from Huobi to EXMO and find the best profitable route to do arbitrage. Using image shown below —
Loop Arbitrage — This is a kind of triangular arbitrage but with a condition that starting exchange and ending exchange is the same. This is required by the user when he/she wants to do arbitrage and also wants to bring the invested amount with profit back to the exchange from where it was started. Let’s take an example using image shown below —
Intra-exchange Arbitrage — It is a type of arbitrage which is found within the same exchange between two markets. Let’s say exchange OKEx have USDT and ETH markets and a coin VEE which can be traded in both markets. Sometimes within these markets, there is a price difference of the coin between these markets. A coin can be bought in one market and sold in another market within the same exchange for profit without actually transferring it and hence avoiding the time delay which usually happens when a coin is transferred from one exchange to another. In the image shown below —
Do let us know in the comment section or by emailing us on [email protected] for any concerns.
