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Low-Risk Arbitrage Trade

What is Arbitrage Trading?

Arbitrage trading is a strategy where traders buy an asset on one exchange at a lower price and sell it on another exchange at a higher price, making a profit from the price difference.

Types of Arbitrage (Low-Risk)

Inter-Exchange Arbitrage

Buying low on one exchange and selling high on another

  • Crypto prices can vary between exchanges due to differences in supply, demand, and liquidity.
  • Traders buy an asset on an exchange where the price is lower and sell it on another exchange where the price is higher.
  • Profit comes from the price difference, minus fees and transfer time.

Intra-Exchange Arbitrage (Triangle Arbitrage)

Profiting from price differences between trading pairs on the same exchange

  • Traders take advantage of price imbalances between three different trading pairs within the same exchange.
  • No need to transfer funds between exchanges—everything happens within one platform.
  • The goal is to start and end with the same asset but with more value.

How to Set Up Arbitrage Trading on CryptoHero

  • Sign up for a CryptoHero account and log in.
  • Navigate to the Exchanges section.
  • Add the exchanges you want to use for arbitrage trading.
  • Generate API keys from each exchange and securely paste them into CryptoHero.
  • Navigate to your “My bots” section and click on “View All”.
  • Click on the “+ New” button at the top-right corner to create a new Bot
  • Choose between inter-exchange or intra-exchange arbitrage strategies based on your preference.
  • CryptoHero supports advanced strategy options to execute these arbitrage strategies effectively

 

  • Customize the bot settings, such as the exchanges you want to trade on, your desired profit margins, and other conditions for triggering trades.
  • Once everything is set up, test the bot on a simulated account to ensure it runs smoothly, then activate it on live markets