In this FAQ:




How does crypto arbitrage work?

For information inter-exchange arbitrage between two exchanges, please see our blog post: How to Profit From Crypto Arbitrage Trading.


For information on intra-exchange triangular arbitrage, please see our blog post: Cryptocurrency Triangular Arbitrage: How Does It Work?



Is crypto arbitrage profitable?

Coygo has recorded arbitrage spreads (price differences) consistently between a number of different exchanges and trade pairs throughout 2020. There are opportunities for profit available if you can find them, but execution risk is always present and profits are never guaranteed. Coygo provides you with the tools to find spreads and try to capitalize on them, it's up to you to develop your strategy and find what works best for you. Profits are never guaranteed, always trade at your own risk.



Does Coygo Terminal support inter-exchange arbitrage between two exchanges?

Yes! Coygo Terminal supports both fully automated inter-exchange trading bot strategies that can identify and react to arbitrage opportunities within milliseconds, as well as assisted DIY arbitrage with our Arbitrage 2.0 experience, which assists in finding spreads between exchanges and rapidly submitting pre-configured orders by hand. 


For detailed examples and explanations of Coygo Terminal's inter-exchange arbitrage tools, please see our blog post How to Profit From Crypto Arbitrage Trading.



Does Coygo Terminal support intra-exchange arbitrage on one exchange ("triangular arbitrage")?

Yes! For intra-exchange arbitrage on one exchange (i.e "triangular arbitrage") Coygo Terminal supports a fully automated trading bot strategy that can identify and react to triangular arbitrage opportunities within milliseconds. For information on intra-exchange triangular arbitrage, please see our blog post: Cryptocurrency Triangular Arbitrage: How Does It Work?



Does Coygo Terminal offer a fully automated crypto arbitrage bot?

Yes! Coygo Terminal's trading bots include strategies for arbitrage. You can configure which exchanges to use, the minimum spread to act upon, how often spreads are recalculated, a maximum order amount, and a number of other parameters. You can learn more about trading bots in our blog post: Crypto trading bots with Coygo Terminal — Simple, secure, and fast or in our FAQ: Coygo Terminal trading bots FAQ. Trading bots are still in development so please check our homepage www.coygo.app for the latest information.



Can I try DIY arbitrage without a bot using Coygo Terminal?

Yes! If you want to try DIY inter-exchange arbitrage (between two exchanges) you can span spreads in real-time, use One-Click Trading to rapidly submit arbitrage trades when a profitable opportunity appears, and use Rapid Transfer to quickly and easily transfer assets between exchanges. You can learn more in our blog post: Coygo Terminal’s Arbitrage 2.0 — Master cryptocurrency arbitrage.



Why can't I view arbitrage spreads across all pairs & exchanges at once?

The way Coygo Terminal works is that it establishes a real-time connection directly between your machine and the exchange, and it keeps a full replica of the order book on your machine. This allows us to provide the lowest possible latency which is necessary for arbitrage, but unfortunately this requires some of your machine's CPU and memory for every order book that it monitors. This means that the application is limited by how much CPU and memory your machine has. For this reason Coygo Terminal is able to provide real-time arbitrage data, but for a limited number of simultaneous trade pairs and exchanges 

 


Which exchanges should I have accounts on for crypto arbitrage?

This will depend on a number of different factors, including your personal trading preferences and which assets you want to trade. We recommend using the real-time arbitrage scanner within Coygo Terminal to get an idea of which exchanges and trade pairs may have price differences between them. You can easily compare prices across a number of exchanges and trade pairs in real-time to decide what works best for you.



Which cryptocurrencies/trade pairs should I use for crypto arbitrage?

Which coins you want to trade will depend on a number of different factors and personal preferences as well. Where you are located in the world, your internet connection speed, your machine's CPU and memory resources, your bot's configured calculation interval, and many other things will affect the performance and outcome of your arbitrage trading.


For inter-exchange arbitrage we recommend using the real-time arbitrage scanner within Coygo Terminal to get an idea of which exchanges and trade pairs may have price differences between them to find what works best for you. You can also utilize Coygo Screener to search for things like coins that may be particularly volatile on a certain day, or coins with a minimum and maximum daily or weekly volume.


Keep in mind that you are competing with other traders and bots. Higher volume markets will likely have more competition.



What time of day is best for monitoring the markets for arbitrage opportunities?

Where you are located and which exchanges you use will have an influence on when you may want to monitor the markets. If you're in the US and trading on US exchanges, the hours that work for you may differ from a trader in Thailand trading on Binance. One way you could help find which times work best for you is to create and run an arbitrage bot in Test Mode over the course of a few days, to see at which times throughout the day the bot finds spreads.



How much do I need in my wallets to start arbitrage trading?

You can start arbitrage trading with any amount in your wallet. If an arbitrage spread has a price difference of 4% with an ask order size of 0.5 BTC and a bid order size of 0.8 BTC, the largest order that you can submit to capitalize on that spread without incurring slippage is 0.5 BTC. So if you have only 0.1 BTC then you'll be able to make that 4% profit (without fees) on 0.1 BTC. If you'd had 0.5 BTC you could have made 4% profit (without fees) on 0.5 BTC. With a smaller starting balance you may miss out on potential profits compared to someone with a larger starting balance, but it is still possible to realize a profit if executed properly.