Please disable your adblock and script blockers to view this page

Understanding automated crypto trading bots

Cryptocurrency trading is profitable, but traders make profits in different ways. There are hodlers (who hold their assets) and daily traders; who buy low and sell high on an exchange. There are also experienced traders, who do arbitrage trading, a form of automated trading. And that’s what we’re going to talk about here.

At any given time, several crypto exchanges display different prices for their currency pairs. This is because the exchanges are not connected. The buying and selling activity on a particular exchange determines the price of the asset on that platform based on demand and supply. This is where crypto-arbritrage traders make their profits.

For example, Bitcoin could sell for $10,000 on exchange X and $10,100 on exchange Y. This difference between the two exchanges allows a trader to buy Bitcoin on exchange A and sell it on exchange B. This represents a gain of $100 — multiplied by the number of bitcoin units the trader was able to trade. And the difference between the platforms can be very huge! However, you have to take into account the transaction fees that reduce the margins.

swapnex.io/ref/CrazyXDavid

Reflink: https://faucet.today/?r=Your_Address

Share this link with your friends and earn 50% referral commission
📒 Total referred users: 317




Powered by Faucet Today