The 3 Best Cryptocurrency arbitrage trading bots of all time

What Is the Process of Crypto Arbitrage?

The art of buying coins on one exchange and selling them on another to profit from the price difference between the two exchanges is cryptocurrency arbitrage.

This can be accomplished by either buying on one exchange, transferring funds to another, and then selling for a profit, or by doing it all from a single exchange or application that handles all of the transferring for you, keeping things quick and simple.

This cryptocurrency trading method is simpler than others because it requires less technical analysis.

It also works particularly well in the cryptocurrency space compared to other financial assets because of the constant volatility, particularly in smaller coins that can (and usually do) fluctuate rapidly, leaving exchanges scrambling to catch up. If you want to start making money with arbitrage trading, there are a few risks and pitfalls.

· The first issue is slippage.

Slippage is the amount of change in the price of the coin you want to buy since you went to execute the
trade. Although the amount is usually insignificant, you are trading with highly tight margins with arbitrage, so every penny counts.

Slippage is an even bigger issue with smaller coins because they frequently suffer from liquidity issues,
which could result in you paying a more unfavorable price.

· The next thing to keep an eye on is price movement.

In this case, the traditional volatility of cryptocurrency is a double-edged sword. Al though it can help you by providing more opportunities to profit, it can also quickly erase them, leaving you with fewer coins than you started with. Smaller coins are more prone to this type of volatility.

Finally, there are fees.

Almost all cryptocurrency exchanges charge fees for withdrawals, deposits, trades, and so on. When trading arbitrage, your margins are so thin that you must account for everything.

If you buy a coin on one exchange and then sell it on another for a 1% gain, and each exchange charges a 0.3 percent fee, you've already lost 60% of your profits, which will be even lower if you're not trading on a centralized platform and must pay deposit and withdrawal fees.

What are the best crypto arbitrage bots?

Bitsgap

Bitsgap was founded in 2017 and is headquartered in Tallinn, Estonia's capital city. They are both cryptocurrency exchanges and arbitrage platforms. Bitsgap integrates with over 25 different exchanges, each of which can be used to arbitrage the purchase and sale of coins.

They boast hundreds of profit opportunities every day, with profits of more than 15% not being
uncommon!


Bitsgap informs users that, while arbitrage can be difficult due to the numerous reasons mentioned above and how fast you need to be to catch a profit, most of these issues can be mitigated by using their great AI and automated trading; you never miss a chance.

Bitsgap offers a variety of trading plans that include the purchase of arbitrage applications and the use of other features on their exchange.

The "Advanced" pricing plan, which costs around 44$ per month and includes arbitrage functionality, is the most affordable.

Cryptohopper

Cryptohopper, founded in 2017, is a cryptocurrency bot platform based in Amsterdam, The Netherlands. Cryptohopper demonstrates how, using their arbitrage platform, you can make trades and profits faster than ever before, which is impressive given the speed required in arbitrage trading.

You can trade arbitrage on price differences across different exchanges using their platform without ever having to withdraw your coins from the site.

Cryptohopper, like Bitsgap, offers a variety of pricing plans for their site, giving you access to a variety of features aside from the arbitrage functions.

The only plan available on the Cryptohopper website that allows you to use the arbitrage functions is the "Pro" package, which costs $99.99 per month. If all you want is some arbitrage, it's pretty pricey!

Pionex

Compared to the other bots on this list, this is a different type of bot trading platform. Pionex is an exchange that includes trading bots. On Pionex, among the many bots available (12 in total), there is an easy-to-use and profitable arbitrage bot.

One of its main offerings for cryptocurrency traders is the Spot-Futures Arbitrage Bot. Pionex claims that you can earn 15-50 per cent APR on this bot, which is fantastic given that crypto arbitrage is a low-risk trading strategy.

Follow these steps to use the Pionex Spot-Futures Arbitrage Bot:

• Install the Pionex app. Select the arbitrage bot at the bottom of the bot list.
• Choose your preferred leverage and the target cryptocurrency.
• Next to the coin, there will be a drop-down menu.
• Clicking on it will bring up a list sorted based on the current funding rate.
• Fill in the investment amount and press the "Create bot" button. It will move some of your funds to your futures account and open a position in the spot and futures markets.
• Click the "shut down" button in the upper right corner to exit the bot.
• The bot will immediately shut down, and you will receive your investment (in USDT).

Conclusion

It is critical to consider your individual needs and objectives when selecting the best-automated trading bots for crypto arbitrage trading.

Each bot has its own set of features, costs, and benefits that you may or may not find appealing. We've gone over the three best crypto arbitrage bots in this post to help you make an informed decision on which one to use.