Exchange Arbitrage: If it’s easy, why do so few people do it?

You’ve just come up with a brilliant idea, it’s called Arbitrage.

And if you already have a full-time job, it becomes a mission: Impossible.

But there is an exception: trading.

But then again, there is another exception: Cryptocurrencies.

Source: http://data.bitcoinity.org/

Paper Trading on different exchanges can be a very good way to identify the best exchanges for arbitrage. But not only that — the speed of trading is something crucial in this trading practice.

Traders have been relentlessly searching for new tools that would allow them to cover more markets and trade longer without having to devote more time to actual trading, and technology has made that possible.

You need to be able to monitor markets quickly and capitalise on price changes. The manual approach to monitoring markets for arbitrage is too time consuming and impractical in many ways.

Interested?

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