How is Arbitrage Done on Cryptocurrency Exchanges?
Arbitrage is the practice of capitalizing on an imbalance between prices in two or more markets in a way that allows you take profits with reduced risk after deducting transaction costs. At Bitcoin Wednesday’s 10-Year Anniversary Genesis Block edition on 2 January 2019, we’ll hear a presentation on arbitrage by Arbitool CEO Adrian Biłgorajski. In his talk, Adrian will cover the different types of arbitrage in cryptocurrency trading, how to search for arbitrage opportunities and how to avoid related threats. In particular, he’ll describe two types of arbitrage on exchanges:
1. Arbitrage conducted on one pair of cryptocurrencies on two exchanges and
2. Triangular arbitrage performed on one or more exchanges.
He will focus on arbitrage between cryptocurrency exchanges with special attention to the following subjects:
- Why do arbitrage opportunities emerge on cryptoccurrency exchanges?
- What arbitrage-related threats are there, and how can you avoid them?
- What are the most common mistakes that can cause you to lose capital?
- How do you search for arbitrage opportunities on cryptocurrency exchanges, and how can you combine this activity with trading?
- What should you pay attention to when selecting arbitrage opportunities?
Adrian will also demonstrate ArbiTool, an arbitrage opportunities scanner for crypto exchanges. The solution analyzes cryptocurrency prices across various trading platforms, then shows how and where it is possible to buy and sell the same asset with great profit. The tool provides information on market depth, buy and sell orders, duration of coin transfers and wallet status at each exchange. It also has a built-in profitability calculator that includes transfer costs from the exchanges and warnings about unusual situations in order to help the user quickly determine the value of each arbitrage opportunity.
Adrian is the founder and CEO of Ganesa Technologies, which develops software for the cryptocurrency sector. He is also an expert trader with a certificate from the Warsaw Stock Exchange and the Warsaw School of Economics, where he graduated from the Stock Market Trading School. Before working for Ganesa, he served as managing director for a telecommunications company that was one of the first in Northern Poland to provide VOIP service. He also held the position of CEO of a payment service provider which processed transactions for the MMORPG — online role playing game — industry.