What is Arbitrage?
There are many ways of making profits on crypto-currency markets. You can earn income from classical approach buy low - sell high. However, there are also ways to generate profits, which are almost risk-free. In our case, we will explain one of the complex methods such as arbitrage trading and how Bitsgap has optimized this feature for our users to become the easiest tool for daily trading.
Arbitrage trade is a set of transactions of the same digital pair executed at the same time but on different exchanges, in order to benefit from the price difference (More precisely, it is primarily buying currency in one market and simultaneously selling it in another market at a higher price, profiting from a price difference)
How can this happen?
The price on the exchanges differs due to the natural effect of decentralization and weak development of the market. From a technical point of view, crypto-currency exchanges are still running on slow web technologies where the price correction is taking a significant amount of time. Since the profit is often obtained as a result of market inefficiency and traders' behavior, the traditional arbitrage possibilities happen more often compared to other financial instruments.
How can I use the Bitsgap platform for arbitrage trading?
The primary challenge of the traditional arbitrage in crypto-currency trading is the reaction and the need to quickly transfer funds from Exchange A to Exchange B to complete the set of orders. On the Bitsgap platform, we eliminate this process by analyzing the huge amount of trading data for you and creating an option to make an arbitrage deal in one click!
Before you start practicing arbitrage trading on Bitsgap, we strongly advise to read following articles: