Kraken

Crypto Arbitrage

The Beginner’s Guide to Crypto Arbitrage


有没有想过为什么 比特币的价格在不同的交易所上会存有差异? 

这最初看起来似乎不寻常,但对于任何在开放的全球市场上交易的资产来说,这都是很常见的。例如,当比特币在2017年升至历史新高时,数据显示19,600美元是Kraken为该加密货币支付的最高价格。 

其他交易所即显示了不同的价格高点,反映出其用户的交易历史,在一些交易所记录中比特币最高的价格高达为20,093美元。 

精名的交易者,即套利交易者,知道如何利用这些微小的价格差异,他们可以通过在不同市场上买卖相同的资产来获得潜在的利润。

在传统金融中,在全球不同市场上交易的证券、商品和货币都存在套利的机会。 (在纽约证券交易所、东京证券交易所和孟买证券交易所的股票价格可能会有所不同。)

加密货币中,交易者通过在不同交易所买卖加密资产 来寻找套利的机会,从而使他们能够利用同一资产的不同价格 获益。

如果我们把2017年12月份的历史高点作为一个套利的例子,比特币的套利交易者可以在 Kraken购买一个BTC,然后转移到另一个不同价格的交易所出售,并可以根据价格差异,减去费用,获得潜在利润。

请注意,希望参与套利交易的人应该谨慎行事:交易成本和交易所费用可能会抵消这些交易带来的收益。
 

Crypto Arbitrage Bitcoin Prices


Crypto Arbitrage and the Law

Since arbitrage seems like a simple way to turn a potential profit, it is fair to ask yourself: is arbitrage legal? In most countries around the world, crypto arbitrage trading is perfectly legal as it contributes to market efficiency. 

Once a crypto arbitrage trader has completed their trade, they will inevitably bring additional traders to the market who are hoping to exploit the same price difference, which will eventually lead to the asset’s price to become more balanced across markets.

However, there are exceptions. You should read up on your local laws before participating in cryptocurrency or bitcoin arbitrage trading. 

When in doubt, always consult a local lawyer or accountant before proceeding.
 

What is Crypto Arbitrage?


With Bitcoin’s high fees and often slow transfer times, bitcoin arbitrage traders have pivoted to more efficient options across cryptocurrency markets. 

Kraken, for example, offers over 150 trading pairs, so, depending on the price of crypto assets across different markets, crypto arbitrage traders can exchange certain cryptocurrencies for others, or for more stable fiat currencies. 

Through a single exchange like Kraken, you can participate in triangular arbitrage trading, which involves spotting the price differences between three cryptocurrencies on the exchange. For example, you can purchase XLM with BTC, sell XLM to ETH, and convert ETH back to BTC.

Arbitrage in Decentralized Finance

The rise of decentralized finance (DeFi) has brought about the creation of decentralized exchanges, such as Uniswap, Balancer and Curve, a type of exchange operated by a global network of computers rather than a central operator. 

Most decentralized exchanges, rather than maintaining a central order book where buyers and sellers can place orders, use a collection of liquidity pools, where the crypto asset price is dependent on those who provide liquidity to the pools. 

When used in conjunction with a crypto exchange like Kraken, traders are able to spot arbitrage opportunities in pools that experience a price slippage due to large transactions.

Arbitrage Considerations

If it is your first foray into arbitrage trading, there are a few things you may need to take into consideration: 

  • Fees – It is important to consider fees in your trading equation, as they can negate any potential profits. For example, fees on Kraken range from 0.1% to 0.26%, so, you may want to avoid arbitrage differences lower than 0.30%.
  • Volume – The higher the trading volume on a cryptocurrency, the higher the liquidity of that coin, which increases the probability of your trades being executed. 
  • Avoiding Slippage – Price slippage occurs when you get a different price than expected on an entry or exit from a trade. Thus, extensive research and perfect timing of the market becomes a crucial component of arbitrage trading.

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Useful Crypto Arbitrage Resources

Looking to learn what decentralized exchanges may help you find different cryptocurrency arbitrage opportunities? Head on over to Kraken’s Learn Center for a deeper dive into protocols like Kyber Network, Uniswap or SushiSwap

If you are interested in learning more about the different cryptocurrencies, you can visit Kraken’s “Types of Cryptocurrencies” page. 

Finally, if you want to spot additional opportunities, you can bookmark Kraken’s price page, which allows you to follow the state of the cryptocurrency market.