Why Subscribe to DeNova Trader

Because you know how arbitrage compares to almost every other investment strategy. Arbitrage is when you find a difference in prices of the same item. You buy from the low market and sell to the high, and pocket the difference.

Cryptocurrencies have created new arbitrage opportunities. There are many exchanges. They all have different prices, often very different. They are online. Transactions happen lightning fast by historical standards.

An obvious trade is to buy where the currency is low and sell where it is high. Software can do much of this for you, called algorithmic trading.

So why isn't every Bitcoin investor a billionaire?

  • Not everyone knows how arbitrage works.
  • Most trading platforms support just one exchange.
  • Transactions can take a lot longer than expected.
  • When you go to or from fiat currency, there can be huge delays.
  • The biggest delays are from AML (anti-money-laundering) and KYC (Know Your Customer) laws.
  • There's always slippage to cut your profit.
  • Some exchanges hate algorithmic trading. They work to slow or stop you. Sometimes they are front running.
  • Some exchanges hate arbitrage. Others don't care. They just want to buy and sell at the prices they choose.

You can bypass or mitigate all these issues. For example, you can detect front running by tracking how often slippage is in your favor and by how much. A quick fix for many AML/KYC delays is to keep the trades in cryptocurrencies as long as possible.

Arbitrage has rarely been this profitable. It's never been this easy.