How To Research Arbitrage Opportunities

How To Research Arbitrage Opportunities


These articles are NOT financial advice -- you are reading these to explore a new idea. Speak to your financial advisor about your own situation.

To find the right coin combination at the right time, you are going to learn about technical analysis -- the art of using chart data to make buy or sell decisions on assets. Is that risky? Sure is! So know what you're doing before you try it.

You can learn about technical analysis here: https://www.investopedia.com/articles/active-trading/102914/technical-analysis-strategies-beginners.asp

After studying, you'll notice that this chart indicates that it may be time to trade BTC to LTC. 

LTC/BTC Chart

Note that LTC has dropped below the support line vs. BTC, and is now starting to crawl back up. The hardest part of this work is to catch the trade a tthe turn, so catching it just after the turn is really, really good. So trading BTC to LTC now is a bargain, and the turn may have started.

The other the catch is that the pair needs to have a history of teeter tottering, like this:

6 month LTC/BTC Chart

 

These spikes are really high, meaning that a brave trader stands the chance of making investment leaps. And experience will notes that LTC and BTC move against each other quite often.

Now try to get a chart on LTC vs. DOGE. You can't get it. They don't trade with each other. 

Put in the comments some of your favorite coin pairs. 

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StarkDead
StarkDead

Statistician who loves playing crypto games


Can You Arbitrage Crypto?
Can You Arbitrage Crypto?

Yes! You can arbitrage crypto. Cryptocurrency is a very volatile market, so volatile that getting into it is a risky venture, as much as you are reading about Dogecoin millionaires. But the volatility itself makes the gamble. Find the teeter totter between two coins and you'll ladder up your value. Read on about arbitrage here: https://www.investopedia.com/articles/trading/04/111004.asp And then check out crypto pairs that move against each other and change frequently.

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