Bitrage is the newest release from the makers of the Gunbot the automated cryptocurrency trading bot.
Bitrage works by engaging in arbitrage trading between different markets, looking for prices fluctuations on various cryptocurrency pairs.
If you are unfamiliar with what arbitrage trading, the best example would be that prices and volumes between different pairs vary, sometimes quite wildly , so if you had bought a cryptocurrency for 1000 dollars, but on a different market the same amount of cryptocurrency was valued at 1500 dollars, you could very quickly make an extra 500 dollars by simply being able to quickly trade that asset between markets.
Bitrage is a automated arbitrage trading bot that takes advantage of this price slippage to maximize your profit.
Table of Contents
- An in depth look at arbitrage trading is
- Can you do arbitrage trading without Bitrage ?
- Different types of arbitrage trading
- How does BitRage work
- Example of how the bitRage arbitrage trading process works
- Is BitRage worth the investment
An in depth look at what arbitrage trading is
Arbitrage trading is not a new idea or a strategy based within the Bitcoin or cryptocurrency realm. Though some people confuse speculation with arbitrage, there is a huge difference between them.
Arbitrage trading within the Bitcoin ecosystem involves the simultaneous buying and selling over several markets in order to make a profit from the sometimes small, sometimes massive price differences across different markets.
If this was to be translated into the traditional markets, it would be like purchasing corn with a US dollar on the NYSE, then selling corn on the Shanghai Stock exchange for yuan, only to sell it and come back to US dollar with profit.
The difficulty in manual arbitrage trading is that the price slippage might rebound by the time you notice the price different, and the fees associated with the dual trades eat quickly into your trades. Also, the primary currency for these trades as well as the dollar and the yuan from our example, also have their own bit of volatility.
Can you do arbitrage trading without Bitrage ?
Traders have attempted to take arbitrage trading to a new level for a long time, but doing it by hand has consistently had its problems. In traditional markets, stock exchanges opened and closed due to time zones, as well as cultural relevant holidays, so trying to skim profits while taking these variables into account have led to most giving up this pursuit.
Fortunately for cryptocurrency enthusiast, Bitcoin exchanges are unified in their constant up-time, regardless of geographic location, although there are still plenty of problems that can stop you from doing arbitrage trading manually. Due to the fees associated with purchasing assets on crypto exchanges, as well as the confirmations required by miners on the networks, sometimes you can initiate a request for what you think can be a profitable trade, but by the time you begin the process, the prices have flipped and you might end up trading at a loss if you didn’t notice the price variation.
If you aren’t entirely prepared for arbitrage trading and focused on all the variables, the process of making a bank transfer to purchasing Bitcoin, then transferring that bitcoin to an exchange, then purchasing an alt-coin with that bitcoin, then transferring that alt-coin to another exchange, then selling that alt-coin for bitcoin, then selling that bitcoin for fiat …. well .. it is as complicated as it sounds.
This is why Bitrage is such a monumental tool for increasing the profitability of your trading.
Different types of arbitrage trading
People forget that there are different ways of making profit within the Bitcoin and altcoin exchanges.
Some people are entirely into Bitcoin in hopes of stacking Bitcoin for the very long-term hold, while others will sell their Bitcoin back into dollars at the end of every trading day.
Each of these have their benefits as well as their drawbacks, but keep in mind that there are also various types of arbitrage trading.
Some like to focus on crypto to crypto arbitrage, while others seek to maximize their fiat holding in the short term, so that they don’t end up actually holding crypto for long.
Without taking fees into consideration, a crypto to crypto arbitrage trade would consist of :
Purchasing 1 BTC worth of NEO, lets say it would be valued at 100 NEO tokens on exchange A, then selling that same 100 NEO for BTC on exchange B.
The trade takes place and the profit consist of essentially free NEO tokens that you can trade away as well, or put aside for long-term holdings.
A crypto to fiat arbitrage trade would consist of:
Purchasing 1 BTC for 5000 dollars on exchange A, then selling that same BTC on exchange B for 5500 dollars.
The profits would be in fiat, which could be set aside for reinvesting, or withdrawn to minimize future risk.
Withdrawing fiat is usually not quite as possible due to the withdraw policies of exchanges, as well as the legality and taxation of fiat from Bitcoin related activities, but with the right setup, it’s still quite profitable regardless of the footwork that it would take.
How does BitRage work
Bitrage takes all the hassle of stalking exchanges endlessly by automating the entire process.
Fees are automatically factored into the profitability of possible trades, so you don’t have to quickly write out formulas to figure whether or not an arbitrage trade would result in a net loss, which in itself is quite amazing. You still have to select your own trading pairs, so don’t think you will just add every trading pair on every exchange and instantly succeed.
Within the Bitrage interface, you can set your minimum gain percentage before you sell, as well as tell Bitrage not to let trades result in huge bags of coins that can’t be instantly traded away ( bags, as it’s commonly referred called, are coins that you unintentionally end up with due to a trade or purchase that doesn’t go well ).
You will also be able to enter in how much the trading fees are on your particular exchange(s) so that you can add that to the overall cost of your trades, once again to ensure that your trades are profitable, even after all the fees are incorporated. If Bitrage scans a opportunity trade, and sees that you would not be able to instantly make your requested profit gain, even after fees, it will ignore that trade opportunity. Do keep in mind that if for your trading fees you put, for example, 0.75 as your trading fees, this will be a percentage, a sum of all the trade fees involved in your trade. So overall, your arbitrage bot will not commence that trade unless you have a trade that will profit you +1.75 % gains.
Example of How the bitRage arbitrage trading process works
- You have Bitcoin BTC in your Binance account wallet and you start Bitrage.
- The bot buys ETH with BTC, then it uses your ETH to purchase ZEC.
- The bot then sells ZEC for BTC, and at the end of the process, you are back to holding BTC and you have now gained more Bitcoin overall !
- All the trades can be done in a few seconds !
Instead of doing this by hand, which would be near impossible, the bot monitors every condition necessary instantly.
Our developers have constructed a Telegram bot based on bitRage, announcing Arbitrage Opportunities LIVE :
BitRage Signals : https://t.me/GuntharSignalTM
Is Bitrage worth the investment
Overall, arbitrage trading can be very profitable with the proper tools and settings, and Bitrage is perfectly honed to take advantage of the volatile Bitcoin and Altcoin markets.
As the media constantly mentions Bitcoin anytime a stock market drops a few points, or whenever a fiat currency loses tons of value, the population will slowly begin joining the rest of us in the digital currency realm. It was not that long ago that Bitcoin hit it’s all time high and every family sat around thanksgiving dinner, asking their nerdiest relative “What is a Bitcoin?”.
Recently market volumes have increased and Bitcoin has jumped up a roughly 1000 dollars over a weekend, so it seems apparent that stacking your bitcoin and alts now will be a good choice for anyone interested in expanding their holdings.
Bitrage is a limited release product. The ‘edge’ that this power-tool brings will hold over other traders, it will be amazingly powerful as you, the trader, begin or continue on your crypto trading journey.
Have you heard of arbitrage trading like this before ? Let me know in the comments below.
