In this FAQ:
- How does crypto arbitrage work?
- Is crypto arbitrage profitable?
- Does Coygo Terminal offer a fully automated crypto arbitrage bot?
- Can I try DIY arbitrage without a bot using Coygo Terminal?
- Which exchanges should I have accounts on for crypto arbitrage?
- Which cryptocurrencies/trade pairs should I use for crypto arbitrage?
- What time of day is best for monitoring the markets for arbitrage opportunities?
- How much do I need in my wallets to start arbitrage trading?
How does crypto arbitrage work?
Please see our blog post: How to Profit From Crypto Arbitrage Trading
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 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 arbitrage 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.
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. 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.
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.