If you’re looking for the best cryptocurrency arbitrage bot, good thing that you’ve stumbled on this article. But if you’re running out of time and need to make a quick decision, here’s my summary of my recommended arbitrage bots:
In this digital age, several platforms offer convenience and profitability at the same time. Before we proceed to our main topic about the best cryptocurrency arbitrage bots, I want you to know that there’s an online course that can help you become a better trader. It’s called Mastering Passive Income organized by The Better Traders. It offers a bunch of beneficial modules to help you kickstart your trading journey.
In my previous article, I reviewed my top picks for the best cryptocurrency trading bots. But what if I tell you that there’s another tool that can help manage your cryptocurrencies? It’s referred to as the arbitrage bot.
At a Glance: Best Cryptocurrency Arbitrage Bot in 2021
|Pricing||Starts at $19 monthly||Starts at 0.0072 BTC monthly||Starts at $25 monthly|
|Free trial||14 days||2 days||Not provided; Free plan for Token Holder|
|Supported Exchanges||Binance, Bitfinex, Okex, Huobi, HitBTC, Bittrex, KuCoin, Exmo, Kraken, Cex.io, LiveCoin, Poloniex, Bitstamp, Coinbene, ZB.com, CoinEx, Gemini, Gate.io, Liquid, LBank, YoBit, TheRock, Bibox, Bit-Z. DDEX, BigOne, and Bithumb||Binance, Bitfinex, BitMEX, Bitstamp, Bittrex, BTC-exchange, Cex.io, CoinBase, Exmo, Gemini, HitBTC, Huobi, Kraken, KuCoin, Okex, Poloniex, and YoBit||KCoin, Huobi, Kraken, Cobinhood, BitMEX, Binance, Bittrex, Bitfinex, Poloniex, GMR tokens|
|Payment Options||Visa, Mastercard, PayPal, Bitcoin, Litecoin, and Ethereum||Bitcoins||PayPal, Bitcoins, and GMR Tokens|
What is Arbitrage?
Crypto arbitrage bot platforms have made many traders wealthy. How is it possible?
Though the term “arbitrage” might seem a word that only intelligent people can understand, it’s plain to comprehend. Traders use the arbitrage process to earn a significant profit from the crypto market. What makes the arbitrage approach interesting is that you can use simultaneous markets to buy and sell assets. Since these markets have different rules, you can take advantage of it.
To help you understand how the process works, assume there are two markets: Market A and Market B. With 500 USDT in your account, you bought 100 assets in Market A (this means that an asset is worth 5 USDT). Then in Market B, you found the same asset, but this time is worth 8 USDT each. You sell your current assets in Market B for that value and earn a total of 800 USDT. Within just a matter of minutes, you earned 300 USDT instantly.
You see, cryptocurrency arbitrage occurs when you buy an asset from a market and sell them on a different exchange (where the asset’s value is higher than the initial). You can repeat the same process on different crypto markets where price discrepancy is remarkable. This results in a trader’s big wins, very straightforward and has low risk.
Right now you might ask: why does a stock’s price differ in various markets? The answer is simple. Disparities in stock prices arise for several reasons. First, the geographical location, wherein investments made in a community affects the flow of businesses and markets. Another factor to put into consideration is low liquidity levels. It affects coin prices though trading activities, bids, and offers. As a trader, you need to be aware that investing in liquid securities is much safer than illiquid ones. And lastly, newly listed coins can affect the stock market and the cryptocurrency space.
Cryptocurrency Arbitrage Approaches
There are three approaches when it comes to implementing cryptocurrency arbitrage: manual, automatic, and hybrid.
In the manual approach, you need to monitor the stock exchanges, assets, and values of different markets. In this process, I usually pair trades of different exchange markets and determine their discrepancy in prices. If I see a notable price variation, I’ll use the pair to buy and sell assets. But mind you, this process is very time-consuming. You might lose any chance you have in the market as well. In this case, you need to consider the value and assets carefully before pairing and trading them. Plus, it’s slower to execute.
Fortunately, the arbitrage bot exists. It’s a useful computer program that helps traders operate continuously without the need to monitor and check prices manually. Arbitrage platforms allow traders to check discrepancies in prices faster. What I like the most about arbitrage bots is that they allow users to fine-tune preferences. Meaning, they will trade based on your predetermined rules. You only need to set up your algorithms and the arbitrage bot will do the craft –as simple as that!
But if you want to take control of your trades in the crypto market, then the last approach will work for you. There are arbitrage bot platforms that allow traders to use a hybrid approach in monitoring exchanges and trade them manually. I believe that this strategy is convenient, especially if you want to control your exchanges with the help of a bot.
Types of Arbitrage
As the word implies, the intra exchange takes place on a single market. Traders use this to increase their balance without leaving their platform. Some might say that this is an uncommon practice, but I tell you, I’ve been implementing this for some time now. And the results are remarkable!
To make things work in this type of arbitrage, you need to use a third coin to connect two cryptocurrencies that you want to invest. So here’s a step-by-step example I use in executing the intra exchange:
1. The bot finds a price disparity between BTC and ADA, where 0.020 BTC can buy ADA.
2. However, ETH can buy ADA for a much cheaper price, for example, 0.017 BTC.
3. I’ll use my BTC to buy ETH first. Then buy ADA with my ETH.
4. With ADA value on hand, I’ll sell it back to BTC value again. This increases my Bitcoin balance.
With bots taking the cryptocurrency trading platforms today, interexchange is made faster and smarter. You’ll only need a good arbitrage bot to take advantage of the price discrepancies within different exchange markets. This is where simultaneous buying and selling stocks in two different markets occur. Ever since I’ve learned about these bots, profiting from various markets is easier than before!
Top 3 Best Cryptocurrency Arbitrage Bot Platforms
Now, let’s get to the main point of this article. Here are my top 3 best arbitrage bot platforms for 2021:
Bitsgap arbitrage bot is my top pick for this round. I highly recommend it to all traders, regardless of experiences, levels, and skills. But, it has a price tag attached to it. Bitsgap offers three structured plans for users: the Basic ($19 monthly), the Advanced ($44 monthly), and the Pro ($110 monthly). All of these plans include standard features, unlimited exchanges, trading signals, demo trading, and portfolio. For those who want to test Bitsgap’s platform first, it offers a generous free plan where you get all the standard features. Yet, the free plan comes with a limit monthly volume of $1000.
What I like the most about the Bitsgap arbitrage bot is its security feature. It keeps your account and all your transactions securely with its encrypted platform. You don’t need to worry about leaking your confidential information online because Bitsgap implements encoded API keys to make sure you’re protected in many ways. Compared to other cryptocurrency arbitrage bots in the market, Bitsgap’s servers execute 2048-bit standard protocols, creating higher security measures. It also has excellent integrations with over 25 cryptocurrencies exchanges in the market. It implements Binance, Bitfinex, Kraken, and many more! Bitsgap also allows traders to create their accounts with fiat currency, such as cryptocurrencies, EUR, or USD.
When it comes to a user-friendly and easy-to-use interface, Bitsgap wins the category. If you want an easy rest on your eyes, the platform allows you to switch from daytime or nighttime mode. For me, it’s the most awesome part of this platform because I don’t get teary-eyed every time I monitor my account in the middle of the night. Bitsgap’s features are simpler compared to globally known arbitrage bots, which for me, is a big point to their system. I don’t need to invest much time in learning how does a feature works because Bitsgap already has my back. You can use their platform via desktop or smartphone. Bitsgap platform comes with transparent customer service too!
One downside I observed with Bitsgap is that you need to set up accounts on your preferred exchanges before using them. So for example, you want to use Huobi. You need to configure the account before making exchanges with it on the crypto market. From a user perspective, I see that this is inconvenient. Other than that, I can say that Bitsgap is an interesting platform for those who want to control and manage their cryptocurrency trading platform single-handedly.
Next to Bitsgap is the Arbitrage.Expert. And I must say that Arbitrage.Expert is among the subtle crypto arbitrage platforms I used before. It offers four structured plans to traders based on the number of months, averaging at a value of 0.0072 BTC monthly. Regardless of the plan used, you’ll get unlimited paths, spreads, and backtesting. As I mentioned before, backtesting is an important component of any cryptocurrency platform. It’s where you configure your preferences and make sure they’re aligned with your predetermined path.
You’re on the right path with the Arbitrage.Expert. It executes the AE Path algorithm, which you can use to discover multi and intra-exchange arbitrage opportunities quickly. Based on my experience, its Path algorithm gives a heads up on trading pairs that will provide you big wins. For instance, it measures liquidity in the crypto market and analyzes the trade size immediately. With these data, you can easily learn the equation and use it to form your preferences and variables.
In addition to the AE Path, Arbitrage.Expert implements the Spreads features. I like this specification because of its noteworthy historical price research that gives you abundant knowledge of the past and present crypto arbitrage boom. You’ll be amazed by the Arbitrage.Expert’s trading simulator, live mode trading, as well as the buy and sell alerts. However, it supports 18 types of cryptocurrency exchanges –way lesser than the Bitsgap’s integrations.
Gimmer arbitrage bot completes my top three picks in this category. I believe that Gimmer has much potential compared to any leading arbitrage bot not mentioned in this round. Similar to the other arbitrage platforms, Gimmer comes with pricing plans that average $25 per month. All of its tiers include arbitrage strategies, exchange trade bot, margin trade bot, spread bot, security, stop loss, and prevent profit. These components work wonder on managing your finances in your account conveniently.
To add excitement, Gimmer gives a free basic version to users. That is if you have a certain amount of Gimmer Tokens (GMR). So if you’re one of them, you’re lucky enough. Gimmer provides full access to your bot of choice. Well, that’s only one of the features I like with Gimmer!
Another impressive thing about Gimmer is that it features complete bot customization. You can create specific strategies, preferences, signals, and indicators. Gimmer even allows traders to implement add-ons as well! I personally used Gimmer as one of my arbitrage platforms, and I can say that their plans are incredibly worth it. With its trade and margin trade bots, I can easily buy and sell multiple cryptocurrencies simultaneously. It also provides great ways to execute margin positions between stock exchanges by using the leverage trading method.
I also find Gimmer’s lending bots beneficial. Ideally, it helped me create a bot that will monitor the lending market I’m in and offer loans that give higher returns. Also, it has free backtesting! You can test your strategy against the previous trading period to determine if your current method will be successful or not. And definitely not the least, Gimmer’s safeties help users avoid unwanted losses. The arbitrage bot does this through practicing limits and stop-losses.
Crypto arbitrage bots arise for several reasons. They create platforms you can use to minimize your risks when working in the exchange market.
Now, it’s up to you if you want to try my three picks for the best cryptocurrency arbitrage bot platform today. But I assure you, they are all worth it. If you have extra time as well, you can learn more about bots through an online course called Mastering Passive Income organized by The Better Traders. They provide over 7 hours of great content disseminated over 14 modules, guaranteeing you successful ways of creating your successful bot!