Beginner’s Guide to Crypto Trading Bots — Part 15 —Custom Arbitrage Bots
Nothing gets more complex than bots you code yourself.
Custom Arbitrage Bot
Profile
Best for : All Markets
Profit Expectation : High, Short Term
Risk : Moderate (dependent on the chosen crypto itself, and your software/hardware/code)
Trading on price differences across different markets is referred to as Arbitrage. Technically all of these bots are “arbitraging” according to classical definition.
More advanced arbitrage strategies can be increasingly complicated to create and deploy, and many of them are privately developed and highly prized by their creators who tend to keep them to themselves.
Some graciously make their bots available on different trade platforms, or they launch their own private or online services which allow people to take advantage of their bots.
In order for custom arbitrage to be achieved successfully, a fast internet connection and hardware that is capable of executing code quickly is pre-requisite.
Let’s take a look at two of the most common forms of arbitrage bots:
- Cross-exchange Arbitrage: The simplest bot technique is to…
