The term arbitrage indicates an operation that allows you to obtain a certain profit without the person who carries it out, taking any risk.
Usually arbitrage consists in the purchase / sale of an asset or a financial asset and in a simultaneous transaction designed on the same instrument traded on a different market from the previous one, or on a different instrument, but having the same characteristics as the first in profit terms. Price differences are exploited in this way in order to make a profit. The operation is obviously possible if the profit obtained exceeds the costs for the transfer of the asset from one market to the other point, there is the opportunity to carry out arbitrage operations every time the same activity is contracted on two different markets at prices, different or if two activities are perfectly replaceable with each other, with identical profit an example can also be made with commonly used goods such as milk. if in Roquefort sheep's and goat's milk costs less than Halluin the referee can buy in Roquefort and resell in Halluin by doing so. Furthermore, the arbitrator helps to realign the prices as the increase in demand increases the price in Roquefort while the increase in supply will decrease it in Halluin ..
In our case we refer to the practice of buying bitcoin or any other cryptocurrency, then reselling it immediately on another Exchange in order to take advantage of the price difference.
According to an estimate released by JP Morgan and a recent Financial Times article on Wall Street, Forex Trading now represents 60% of the volumes. Artificial Intelligence is more efficient than real human people If it is only a matter of managing daily exchanges and not to evaluate the long-term potential of a company to invest in.
Trading robots are better traders than humans move instantly and have an incredible ability to collect information and analyze quickly.
In our cryptoworld I have tried two solutions of two of the famous players in CryptoArbitrage. In the next articles I will talk about them ;)