Top 5 Crypto Arbitrage Bot Platforms

What is Crypto Arbitrage Trading?

Arbitrage trading is a strategy in which traders hunt price discrepancies for a trading pair between two or more exchanges.

Kimchi Premium: Arbitrage Trading Redefined

The Kimchi Premium is another example of arbitrage trading done right. The premium is a market phenomenon that exists as a result of South Korea’s tight financial regulations. Foreigners cannot trade on Korean crypto exchanges due to laws that limit the ability to move money in and out of the country.

Types of Arbitrage Trades

While arbitrage trading boils down to buy for one price and selling for an even better one, there are still many types of arbitrage trades. The following section explains how the three most popular types work.

Cross-exchange arbitrage

Cross-exchange arbitrage is the OG arbitrage technique. This strategy works by buying a cryptocurrency on one exchange and selling it on a different exchange. The goal here is to buy low and sell high.

Spread Arbitrage

Spread arbitrage focuses on trading the bid-ask spread of an asset’s order book. Low liquidity leads to large spreads between bid and asks (buy and sell orders). Traders can trade these spreads and profit from the price difference.

Decentralized arbitrage

Decentralized exchanges (DEXs) don’t have market makers (MMs) who regulate the prices of trading pairs and liquidity pools.

Are Crypto Trading Bots Profitable?

Crypto bots can be very profitable. Their customizability makes it easier to profit from automated trading as it allows you to experiment with strategies and optimize them.

Top 5 Crypto Arbitrage Bot Platforms

The following section features the top 5 crypto arbitrage bot platforms in 2022. Keep in mind that the platforms aren’t ordered in any particular fashion. I suggest trying out and reading about each platform before risking real money.

1. HaasOnline

2. CryptoHopper

3. Pionex

4. Quadency

5. Bitsgap

Bonus: Shrimpy

What to Look For in a Crypto Arbitrage Bot

With so many options, it’s difficult to decide which crypto arbitrage bot to use. Most platforms offer similar features, and without trying them all out, you won’t be able to tell which one best suits your needs. This begs the question: what should you look for in a crypto bot?

Price

Price dictates everything nowadays, even the crypto bot you’ll use. Always check the pricing of an automated trading service before subscribing and make sure that it fits your budget.

Security

Don’t even think about connecting your exchange account to a crypto bot if it isn’t secure. You don’t want to lose your capital to a fraudulent service or to an unsecure service that’s seconds away from suffering a hack.

Connectivity

Speaking of exchanges, you want to confirm that the bot of your choice supports your main crypto exchange. The arbitrage bots I’ve listed in this article support most of the popular trading platforms.

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Shrimpy is a crypto exchange trading bot for portfolio management, indexing the market, rebalancing, and strategy backtesting. Join now at shrimpy.io.