Crypto currency arbitrage

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Fella

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I've started studying crypto currency during my covid downtime. There seems to be a lot of opportunities here to make money utilising offers and arbitrage. With over 300 exchanges and large price differentials between exchanges it's possible to buy and sell between exchanges and lock in profits.

Is anyone here actively doing this ? I don't want you to post your strategy just a yes or no. I've found it possible to use offers on a couple of exchanges to extract profit evn when there is no differential in prices between exchanges. The opportunities that exist are very similar to tactics I used in matched getting days.

I'm starting out small as I dont want to put huge money into these exchanges as they are relatively new names to me , I am making a steady profit now but would like to automated it especially the arb alerts service which I will like outsource at an initial cost. Just interested if anyone is doing this already ?
 
Fella said:
I'm starting out small as I dont want to put huge money into these exchanges as they are relatively new names to me , I am making a steady profit now but would like to automated it especially the arb alerts service which I will like outsource at an initial cost. Just interested if anyone is doing this already ?
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Are you using an arbitrage bot? If so, which one? My understanding is that crypto arbitrage isn't what it used to be from a profitability standpoint as the market becomes more and more efficient.
There are some geographical anomalies when it comes to bitcoin pricing - for example, in some latin american countries, its possible to benefit from a lower BTC price - but this comes with a logistical issue (having to walk cash into the country).

Other than that, there are opportunities in terms of coin staking and providing market liquidity.
 
I wrote a Java application 3-4 years ago to do this across the few major exchanges around at the time. The bot would trade fairly regularly, but there was rarely enough volume available to make much money from it. Most of the exchanges were using different APIs, so you had to code for each one individually.

Really enjoyed making it, but it was a lot of effort for very modest gain. I’d imagine these days there are lots of others doing it so the volumes are probably even worse...

I don’t think paying somebody to build it would be advisable tbh.
 
Dublinbay12 said:
Staking and crypto loans all offer decent returns.
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Comparitively better returns from crypto lending than conventional deposit savings but not worth the risk. It brings the ills of the conventional system with it ( rehypothecation ) without a robust deposit guarantee scheme in place.
DeFi Lending works better from the point of view that it relies on smart contracts. However, it's early days and all the bugs may not be ironed out just yet. The risk is in the smart contracts themselves and the continued integrity of the underlying digital assets. Nexus Mutual has started to offer insurance on these DeFi smart contracts but it's unclear if that will stand up in all circumstances. DeFi Lending rates can be found here.
I'm tempted but staying on the sidelines on that for the moment and watching closely as it develops.
 
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