Первоначально человечеству был доступен весьма a limited range of opportunities to make a living: gathering, hunting, primitive farming. But as the society developed, new tools became available. One of them is arbitration of crypto-currencies. At first glance, it may seem like a usual kind of speculation. But what can you learn if you study it in more detail?
general information
When cryptographic money appeared, thenThe exchanges offering their services for their purchase, sale and exchange began to develop. Moreover, these operations can be performed both between virtual currencies (for example, bitcoin for lightcoin) and conventional traditional ones, like rubles, hryvnia, dollars, euro. On these exchanges, the rate is more or less similar, but, nevertheless, the differences can reach several percent.
Earning in the arbitrage of crypto currency meanspurchase at a low rate, and the realization of a higher one. Profit is the size of the difference. By the way, it is called arbitration. To earn this way, you do not need to have special knowledge or skills. It's enough just to constantly monitor the value of the courses on the main exchanges.
What should I look for?
Here is a short list:
- Actually, the course itself.
- The amount of commission for input or output of fiat.Here you should step back and make a little explanation. Crypto-currencies are usually entered without commission. At withdrawal, a small fee is charged. Therefore, in order to avoid negative consequences, you should follow the Fiat.
- Know the list of codes of exchange offices. We will talk about this later.
Where to deploy activities?
On what platforms can you master the inter-exchangearbitration crypto-currency? It should be noted that there is a fairly wide potential field of work. But within the framework of the article only the most popular ones will be listed:
- BTC-E. This is perhaps the most popular Russian-language exchange. Its feature is, as a rule, a lower rate than on other trading floors.
- EXMO.The exchange, where the trade is in large volume, there is a significant difference between the rate of sale and purchase, orders are executed quickly. It is quite good for beginners to earn initial capital.
- YoBit. A wide range of Crypto-currency, there are bonus distributions. It is considered the leader of the process of adding new positions.
- Livecoin. Quite an extensive Russian-language exchange.
- Btc-trade. Ukrainian project, working with the hryvnia. It has good rates, working with it is much more profitable than through exchangers.
On these exchanges, you can monitor real-time cryptocurrency rates and when there is a profitable option to buy / sell them.
How to earn?
The most optimal way is to transferfunds between exchanges using special codes. The positive point is that no commission is charged for their use, and operations are carried out instantly.
The advantage of codes is that they can workas with cryptocurrencies, and with traditional cash. You should also understand that they are disposable. Therefore, by activating the code, a person will say goodbye to the amount on one of his accounts. It should be noted that earnings in exchangers may have their pitfalls, for example, work is not automatic, but manual mode. Therefore, a similar service for cryptocurrency arbitration is undesirable to use.
Example
Let's look at the situation that,potentially, may be the case. Suppose that EXMO bitcoin costs 400 thousand rubles. And on the BTC-E they sell for 396,000. What is the procedure? Initially, you need to enter funds for BTC-E and buy one Bitcoin. After that, it is translated to EXMO using a code. In this case, a fee of 0.001 BTC for the movement, as well as 0.2% for the purchase and sale is charged. All that remains after the sale and there is a profit. In our case, it will be about two thousand rubles. And then the most interesting begins - the cryptocurrency arbitration itself.
Initially, you need to find the best way to return.your money on BTC-E. After this process is repeated. It should be noted that there may be no lucrative offers at a certain point in time. Therefore, it is necessary to track real-time cryptocurrency rates in order to earn money at the right moment.
To fill free time, you can tradecurrency directly on the exchange itself. This is a classic arbitration scheme. It is convenient due to long-term use and is the most popular principle of interaction.
A little more about the classical scheme
If you do not want to start trading without investingtheir funds, the initial capital can be obtained on sites that distribute it for free. It's enough to register, work a little, and it will be available in a couple of days. The profit itself is shaped by the inefficiency of the system for the implementation and aggregation of price quotes. We can confidently say that in the classical scheme there are minimal risks. But they are still there, you should not forget about it.
It is necessary to mention the minimum requirements in order to successfully start here (you can, of course, lower the bar, but then the effect will be minimal). So this:
- The amount of funds for arbitration is more than six thousand rubles.
- Transaction fees as well as transfers between exchanges cost less than the profits they receive.
- Work in a low-active bidding period to earn up to a significant price change.
- It is desirable that the pair being traded differs by more than two percent. The above example, where it was only 1%, should not be considered as a practical guide to action.
Static arbitration earnings
Этот способ требует анализировать текущее state of the market where the participant acquires the most promising asset in terms of growth. There is a risk of making the wrong choice, which will lead to financial losses. In general, this approach has much in common with trading strategies that rely on the calculation of possible profits. The main task in this process is to determine patterns and use them for your own benefit. How is such cryptocurrency arbitration implemented in practice?
First you need to select a fewdependent instruments by forming your trading portfolio. Then you should determine where there is an underestimation, and where there is an overestimation. And we buy what is profitable for us. The effectiveness of this approach is relatively lower than when working on the classical scheme. But the strategy is more flexible. Often the decision in this case comes down to the formation of a neutral portfolio, the price chart of which moves without strong jumps. Let's look at a small example.
Let's say the bet was made on a statisticalarbitration pairs - lightcoin and bitcoin. There is a high correlation between them. At the same time there is a pattern - one currency goes up, the other down. Then they switch places. Our task is to buy catch-up currency and sell the leading one. At the time of their contact close the deal. If there is an assumption that currency parity will be established, then this can be realized without significant risk. But, alas, there is a minus here - dependence is not constant and will not always act.
The use of automation
All the above suggests that actions are performed by man. But surely everything will be that way? No, a special program for arbitration on the cryptocurrency exchange can come to the rescue.
Причем средства автоматизации выполняются в pretty wide range. This may be a bot for arbitration cryptocurrency engaged in trade, and a program that will only report on changes and / or the achievement of a certain level of quotations, and all decisions will be up to the person. The most attractive sounds the first option. But if automatics knew how to trade perfectly, then it would quietly supplant all people-brokers and traders. Great to lose. Therefore, the most suitable option is a program with information functions. And you have to rely on your mind.
