Crypto arbitrage is an exciting cryptocurrency trading strategy that involves buying and selling the same pair at the same time on different exchanges. Since cryptocurrency exchanges operate independently and have varying liquidity, the price of the same trading pair can vary on different exchanges.
However, the success lies in speed here. You need to buy and sell the asset on two exchanges at the same time to earn profits. Crypto arbitrage bots automate arbitrage trading and help you place trades quickly.
Today, let’s look at the eight best crypto trading bots you can use in 2021 to profit from price differences in the crypto market conditions.
Best Arbitrage Crypto Bot
Crypto arbitrage trading requires quick movements. You need to buy crypto assets on one exchange for a low price and sell it at a high price on another exchange. This needs to be fast, and any delays and affect your profits.
Arbitrage crypto bots automate this process. These bots buy cryptos from one exchange at a lower price and sell them at a higher price on another exchange automatically in a matter of seconds. This increases your chances of making profits from price differences.
Let’s look at 8 crypto arbitrage bots you can use in 2022.
Pionex is an automated cryptocurrency trading platform with 16 free crypto trading bots. It has a spot-futures arbitrage bot that enables you to earn 15-50% APR with low risk. The bot works great for perpetual futures contracts, and the futures price can show significant fluctuation on different platforms.
If you are new to arbitrage trading and want to leverage arbitrage opportunities effortlessly, Pionex’s arbitrage bot can get the job done for you. Apart from the arbitrage bot, the platform also has a grid trading bot that enables you to implement grid trading strategies.
Pionex gets liquidity from Binance and Huobi — two of the world’s largest cryptocurrency exchanges in terms of trading volume. Moreover, Pionex is one of the biggest market makers of Huobi and one of the biggest brokers of Binance.
Pionex supports fiat deposits. You can link it directly to your bank account and deposit and withdraw in USD.
Key features of Pionex are:
- Arbitrage bot trading with 15-50% APR
- Support for Fiat currencies
- Liquidity from Huobi and Binance
- Supports hundreds of trading pairs
- Get leverage on BTC and ETH
Quadency is a comprehensive crypto trading and portfolio management platform that allows you to integrate arbitrage bot strategies and earn profits from price differentials across crypto trading platforms.
At the time of writing, Quadency supports 15 bots and strategies, 35 exchanges and wallets, and over 4,000 trading pairs. Moreover, the platform offers top-notch security and high performance. You can easily connect with leading exchanges like Coinbase Pro and Binance.
The arbitrage trading bot on the platform allows you to profit from price differences on dozens of different exchanges. Apart from arbitrage bot trading, Quadency also supports accumulation, grid trading, portfolio rebalancing, and market-making trading.
Additionally, Quadency supports indicator-based trading. You can use trading indicators like Bollinger bands, MACD, DMAC, multi-level RSI, and mean reversion. The platform also supports the TradingView bot for signal-based trading.
The key features of Quadency arbitrate bot trading are:
- Various types of bots to choose from
- Implement popular strategies easily
- Indicator-based trading
- Support for 35+ exchanges and wallets and 4,000+ trading pairs
- Free trading bot plan available; paid plans starting from $49
Bitsgap is a popular crypto trading platform with arbitrage trading functionality. The platform has a dedicated cryptocurrency arbitrage tool that lets you track price differences on various exchanges and earn profits by leveraging those price differentials.
Bitsgap arbitrage bot integrates with over 25 popular crypto exchanges. These include Binance, OKEX, KuCoin, FTX, Huobi, Bitfinex, Coinbase, and more. The Bitsgap website states that their arbitrage bot generates 400 daily opportunities, with a maximum profit potential of 20%.
Bitsgap is also very easy to use. All you need to do is create an account on Bitsgap, activate the arbitrage bot, and start making profits. Moreover, the platform holds your funds securely via API keys. Bitsgap has no access to your funds.
Let’s look at the key features of Bitsgap’s arbitrage crypto trading bot:
- Easy to set up with a user-friendly interface
- Leverage hundreds of opportunities per day
- Buy and sell cryptos across 25+ exchanges
- AI-powered auto trading bot for intelligent trading
- No extra trading fees
Like HaasOnline, 3Commas is a dedicated bot service that provides various automated bots for crypto trading. Apart from arbitrage bots, it offers DCA Bots, Smart Trade, Grid Bot, and Options Bot, along with support for the TradingView charting system.
The platform is user-friendly and has affordable plans. It has four plans, one is free, and others are priced at $14.5, $24.5, and $49.5 per month when paid annually. There’s no separate trading fee. You get support for 18 exchanges, TradingView integration, and over 20 trading features on all plans.
A great thing about 3Commas is that you can set up an automated trading bot for multiple trading pairs. You can leverage both long and short algorithms to buy and sell cryptos. The bots use close signals provided by TradingView to square-off positions. The signals come from RSI, ULT, and TA tools.
Key features of 3Commas arbitrage trading bot are:
- Single-pair and multi-pair bots
- Long algorithm and short algorithm trading
- Deal close signals
- Manual and automated arbitrage trading
- API access for enhanced functionality.
Cryptohopper is an automated crypto trading bot that supports various types of trading. One of its key features is exchange and market arbitrage. The bot allows you to benefit from price differences on various exchanges.
Cryptohopper’s best crypto trading bot allows you to exchange arbitrage between exchanges without transferring funds. All you need to do is connect an exchange where you have funds and turn on the Exchange Arbitrage feature. The Cryptohopper bot will take it over from there.
Moreover, Cryptohopper allows you to integrate all your exchanges and make arbitrage trades between them. You can select multiple pairs on different exchanges and make profits on price differences.
Cryptohopper has four plans. There is a free plan, and the paid plans are priced at $19, $49, and $99 per month.
The key features of Cryptohopper are:
- Automatic arbitrage trading
- Mirror trading, paper trading, and backtesting
- Support for multiple exchanges
- Algorithm Intelligence (AI)
- Support for 100+ cryptocurrencies
HaasOnline is an automated trading platform that provides various advanced crypto trading bots. Moreover, it’s a unified platform where you can use all types of bots, including the best crypto arbitrage bot, grid trading bot, etc., from a single dashboard.
The bot you’ll be using on the platform is HaasBot, which allows you to automate your trades in several ways. HaasOnline’s website doesn’t disclose the number of exchanges supported for arbitrage trading, but it certainly integrates with popular exchanges like Binance, Huobi, Kraken, etc.
To use the bot, users need to join the HaasOnline TradeServer. Once you join the server, you can use the standard trade bot to deploy arbitrage trading strategies. However, please note that the arbitrate bot is only available with the Advanced plan and not with Beginner and Simple plans.
Here are the key features of HaasBot:
- Wide range of automated trading bots
- Create and modify your bots using custom scripts
- Get real-time notifications and email alerts
- Use HaasScript for better control
- Pay for plans in BTC
Gimmer is an automated crypto trading platform that lets you download and automate an arbitrage trading bot on almost any exchange. The platform supports various exchanges, so you can integrate the cryptocurrency trading bot with them and profit from price differences.
Apart from arbitrage bot trading, Gimmer has an automated crypto lending bot. You can also choose from different trading bot modes. The platform allows you to create a portfolio of trading bot strategies and back-test them for free.
Gimmer supports multi-coin trading as well, so you can select various coins and trade them automatically using the bot. There is also a unique feature on the platform. Gimmer lets you rent your bot to other crypto traders. It has a social trading network where you can connect with other traders.
Lastly, Gimmer has its native token (GMR). You can buy it on Uniswap, Braziliex, YouBit.net, ForkDelta, TokenJar, and EtherDelta.
The key features of Gimmer are:
- Automated crypto trading
- Rent cryptocurrency trading bots and strategies
- Backtest and customize your strategies
- Multi-coin crypto trading
- Safe, secure, and easy to set up
#8. Blackbird Bitcoin Arbitrage
The final platform on the list is the Blackbird Bitcoin Arbitrage. It’s a C++ trading system that automated short and long arbitrage between cryptocurrency exchanges. Blackbird is unique because, unlike other arbitrage trading bots that sell crypto, it short sells it.
This results in two major benefits. One, the strategy remains neutral in the cryptocurrency markets and doesn’t impact your trades regardless of the movement of the crypto markets. Second, it doesn’t need to transfer funds between exchanges. The transactions happen in parallel on the two exchanges, so you don’t have to worry about transfer latency problems.
There are a few other unique things about Blackbird Bitcoin Arbitrage. Unlike other bot trading platforms, Blackbird isn’t a platform. It’s just an open-source bot that you can integrate into your arbitrage strategy.
Some key features of Blackbird Bitcoin Arbitrage are:
- Support for eight exchanges, including Bitfinex, Kraken, and Gemini
- Implementation in progress for Binance, Bittrex, and Poloniex
- Protection from sudden price fluctuations
- Free crypto trading bot
- Easy to implement
Are Crypto Arbitrage Trading Bots Profitable?
In a nutshell, yes, they are. Crypto arbitrage bots are profitable, and they’ll remain to do so till there are price differences between exchanges.
Since each crypto exchange operates independently without any regulation, price variations are common. As long as these differences exist (which will certainly do forever), there will be money to be made with crypto arbitrage trading.
However, just because crypto arbitrage bots work, that doesn’t mean it’s easy to make profits from them. Many times, the price difference on two exchanges is almost negligible. For instance, at the time of writing this — 8 Oct 2021, 15:10, the price of the BTC/USD pair is $55,350 on Coinbase and $55,355 on FTX.
It’s rare to see massive price differences on two exchanges, and the scope of making a profit isn’t huge. On the positive side, the risk of loss is also minimal. This makes crypto arbitrage trading ideal for beginner and experienced traders who want to play it safe.
Do Arbitrage Bots Work?
If you have this question, you’re not alone. It might seem weird to buy and sell the same thing at different places for different prices and make a profit out of it. But yes, arbitrage works, and so do arbitrage bots.
Several factors affect the price of an asset on multiple exchanges. These include:
- Variations in liquidity across exchanges
- Difference in exchange types
- Difference in withdrawal and deposit times
- Change in foreign exchange rates
Since these factors are inevitable, there’s always scope for arbitrage. Therefore, arbitrage bots work, and they’ll continue to do so.
How Does Crypto Arbitrage Work?
Arbitrage simply means a difference in the price of the same cryptocurrency on two or more exchanges due to any reason. Arbitrage works in three ways:
- Spatial arbitrage: In spatial arbitrage, you buy crypto from one exchange and sell it immediately on another exchange to earn a quick profit.
- Convergence arbitrage: In this type of arbitrage, you buy a cryptocurrency on one exchange and sell it short on another exchange. Here, the goal is to make the two prices converge.
- Triangular arbitrage: This is an advanced strategy where you trade more than one trading pair at a time on multiple exchanges.
Crypto arbitrage trading is gaining popularity, especially among new traders who want to play it safe. With crypto arbitrage bots, you can automate your arbitrage trading strategy and increase your profit potential. However, finding the right bot is important.
Dozens of crypto arbitrage bots are there, all offering different features and functionalities. Be sure to examine each platform and find the bot that suits your requirements. It’s best to test various bots and find the one that performs best.
So, which crypto arbitrage bot did you like the most and why!!