How do you take advantage of arbitrage opportunity

1. How do you take advantage of arbitrage opportunities? Owing to the immense popularity that Cryptocurrencies have gained over the last decade and are increasingly becoming part of the mainstream, today everyone wants to try and make the most of what it has to offer. Many traders today are looking for ways to gain profits from it. What is Arbitrage Trading in Crypto? Whether you are a novice or an experienced crypto trader you might have come across the term ‘Arbitrage Trading’ at some point in time. Arbitrage Trading is one of the ways to yield low-risk gains from cryptocurrency. In layman's terms, arbitrage trading is nothing but buying or selling crypto assets across multiple exchanges or within exchanges and taking advantage of the price discrepancies. For instance, coin x could cost $100 on one exchange but could be trading at $120 on another for a very small window of time due to discrepancies in the exchange prices. This generates an opportunity for arbitrage of $20. Ways to take advantage of Arbitrage opportunity However simple it may sound there are some definite tactics and strategies that you could follow to be successful at arbitrage trading. Here are a few ways you can use order to take advantage of the arbitrage opportunity: 1) Spatial Arbitrage- Look for the same asset trading in different markets at different prices - This happens when there is a small window of opportunity that comes when the prices are not updated for the same assets in different exchanges or markets. This provides an opportunity for the trader to make some profit from the differences in prices. For this, you need to make quick transactions and be able to identify this at the earliest. However higher transfer time and exchange fees could be a deterrent in this way. 2) Spatial Arbitrage with no transfer of assets - Some traders may go long on a certain crypto asset on one exchange and short on another. This way they avoid the risk of low transfer time, however, the risk of fees at different exchanges still pertains here

2. 3) Triangular Arbitrage - This is another way in which you can take advantage of the arbitrage situation. Triangular arbitrage is when two different assets are traded on the same exchange. Let’s say you buy Crypto A for Crypto B where the A is undervalued than B and then sell Crypto B to Crypto C where it is overvalued than Crypto C. And then you trade Crypto C with Crypto A and complete the triangular arbitrage. Means to take advantage of Crypto Arbitrage Opportunity Arbitrage trading requires identifying opportunities and acting upon them quickly. There are different software that is available in the market today that are super fast in identifying arbitrage opportunities and can place trades on behalf of traders. PlatinX - The Best Arbitrage Software in India The arbitrage software by PlatinX is one of the most sought-after software by most crypto trading firms today. The best thing about PlatinX software is that it comes with inbuilt strategies that we discussed in the above article. Here are some of the the features that this software  High Frequency  Low latency  Multi exchange integration  Auto Order Management and execution  Faster speed  Ease of use  Provide Strategic Solutions Click here to know more - https://www.platinx.io/crypto-arbitrage- software/