Ever been curious about the price difference that happens between exchanges? Pretty much every asset will have at least a tiny bit of a price gap between two platforms. That leaves a very interesting opportunity for traders to pick up for fast profits, and Bitsgap makes that process easier than ever before.
This is called crypto arbitrage, and it might be the easiest way to make a profit from your trades! Taking advantage of cryptocurrency arbitrage opportunities is one of the fastest ways to make a profit, and with a good system in place, you can rely on it as an additional income.
How does cryptocurrency arbitrage work?
This strategy works by buying or selling a coin on an exchange where is a clear price advantage. This allows you to then flip it on another exchange for a profit. For example, you buy Bitcoin on an exchange where the price is lower and then sell it on an exchange where the price is higher, resulting in a price difference profit.
While the profits for arbitrage are small, they can be substantial when you perform many trades like this over the course of the day or for large amounts of crypto coins or tokens.
What problems there are?
While the overall idea is great, the best opportunities don't last long. This means you need to be fast to monitor and take these opportunities. The old way of doing crypto arbitrage required you to quickly move things around, but that strategy is exhausting.
You’d also need to worry about calculating the fees on exchanges to know whether or not you are actually making a profit in the end. It is slowing you down significantly.
The Bitsgap advantage
Bitsgap’s tool makes it easier to profit from cryptocurrency arbitrage. When using your Bitsgap account to complete your trades you get an advantage from the power of being connected to 25+ crypto exchanges, providing you access to the most opportunities.
Thanks to an automated and AI-powered system, trades can be made in just one click! See your trading history at a glance, and even let Bitsgap automatically track profits for you so you know exactly how much money you’re really making when you trade.
How to get started with cryptocurrency arbitrage on Bitsgap?
The first step is learning how to find crypto arbitrage opportunities. Fortunately, Bitsgap makes this extremely easy! The platform automatically identifies all of these deals for you and allows you to execute those trades in just one click.
Connect two or more exchange accounts
The first step is to connect your exchange accounts using the API. You can perform arbitrage with just two accounts if you want, but the more accounts that you connect the better chance you’ll have of finding profitable trades that Bitsgap can perform for you.
Make sure that you have funds available at those exchanges
You’ll need to have funds deposited on each account so Bitsgap can execute trades for you based on the price difference. Make sure everything is set up correctly so that you can begin trading. You’ll need a fiat currency (EUR, USD, etc) on one exchange and a cryptocurrency (ETH, BTC, etc.) on the other exchange for Bitsgap’s arbitrage function to work properly.
Choose how much of your balance will be used for trading
Bitsgap allows you to specify how much of your balance will be used for these trades. Choose from 25% to 100% of your funds.
That’s it! You’re ready to start profiting from arbitrage opportunities. All you need to do now is select some trades that the platform points out. In one click you’ll be able to perform profitable trades, and the platform even tracks your profits for you.
Interested in testing out the arbitrage tool or one of the many other great features of Bitsgap? Create an account today to give your trading strategy the edge that it deserves.