Crypto arbitrage: the holy grail of cryptocurrency trading. If you’re not familiar with it, crypto arbitrage is when traders buy and sell cryptocurrencies on different exchanges to take advantage of the price difference.
The best part about this strategy? You don’t need any technical knowledge and can still win 1K Daily Profit!
More About Crypto Arbitrage!
Cryptocurrency arbitrage refers to buying cryptocurrency on one exchange and then selling it immediately at another for a small profit.
There are several main reasons people engage in this practice, including the desire to make money quickly or hedge against sudden price drops by holding more than one type of coin.
Arbitrage trading has a couple of risks, however. First, many traders who engage in arbitrage mistakes put all their eggs into one basket. If the price of a coin drops sharply, they could make more money arbitraging than if they had simply held on to it and not traded at all.
In this blog post, we’ll discuss 3 reasons why you should try out the fantastic crypto arbitrage strategy for 2021.
Number One:
The first one is pretty obvious. Arbitrage trading is a surefire way to make money with crypto; there’s no doubt about it! There are three simple ways in which you can take advantage of the price difference between two exchanges:
– Buy on one exchange and sell on another for instant profit.
– Take your favorite altcoins from different exchanges and consolidate them into more significant amounts that will allow you to achieve better prices when selling or withdrawing.
This works particularly well if you need BTC as an intermediary coin (to buy other coins) since Bitcoin transactions usually cost less than USD 25 per transaction. You’ll be able to save up on fees this way while buying more at once instead of doing multiple small transactions every time.
– Use limit orders so you can buy at a lower price and sell for a higher one.
Number Two:
Another great reason why you should try crypto arbitrage is that it’s simple to get started with; anyone, regardless of their level of expertise in trading or coding, will be able to do this. All it takes is:
– A wallet (you’re probably already set on this one).
– An internet connection – which we hope you have! If not, there are other ways in which you can still make money through altcoin trading without an active internet connection using bots instead of manual transactions between exchanges.
But let’s keep things simple here so we won’t go into too much detail about bot strategies today.
Number Three:
And last but not least… the best part about crypto arbitrage is that you can take advantage of the volatility in cryptocurrency prices to make money day after day. All it takes is a little patience and consistency with your trading strategy!
A great way to get started with this is by using Cryptohopper, one of the best tools for automating trades on different exchanges. It’s super simple to use – all you have to do is choose two coins from two other businesses (you’ll be buying low on one sale and selling high on another).
You then set up how long you want the bot to wait before making its next trade; this period will vary depending on market conditions, but generally speaking, 20-30 minutes are good enough if you’re only starting with automated trading.
Once you’ve entered all of your settings, Cryptohopper will begin buying and selling for you!
Conclusion:
The crypto arbitrage strategy is a great one to have in your arsenal. Not only does it work well with most altcoins out there, but–most importantly–it doesn’t require much technical knowledge or effort from your side at all. All you have to do is follow these simple steps.
There are many other great reasons why you should try the crypto arbitrage strategy for 2018, but that’s all we’ll discuss today to keep this blog post short.
If you want to learn more about different procedures, make sure you bookmark our website and come back regularly for more tips.
