Price difference on bitcoin exchanges represents an opportunity for easy, safe profits.
Bitcoin is by far the most liquid cryptocurrency, but there are still inefficiencies across its many exchanges. It’s not unusual for prices to be several dollars apart, one way or another. Those differences can be exploited by arbitrage: buying at the lower price and simultaneously selling at the higher one.
Whilst this can be done manually, it’s far easier with custom software that continually checks the most active exchanges and automatically executes the trade when it sees a discrepancy. It also requires having a significant amount of funds on both the exchanges in question, since even with bitcoin withdrawing money from one exchange to another takes too long; opportunities may last only seconds. The more funds you have in place, the most profit can be made before you have to readjust your balances to make sure the BTC and USD are in the right place.
NEXT and NEXTBOND
Sasha Ivanov, known across the web as Coinomat after his instant exchange business of the same name, has been coding and running such bots for years, with significant success on both the bitcoin and altcoin markets. With two associates, he has now consolidated his arbitrage bots into one umbrella fund, called NEXT, which also holds several revenue-generating assets. NEXT is hosted on the Nxt blockchain, meaning it can be traded peer-to-peer like a cryptocoin. Dividends are paid fortnightly, in the native currency NXT. …
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