Crypto Arbitrage is the process of spotting the difference in the different digital asset prices and taking advantage of those alterations by buying the asset at a lower price than selling it. Thus, crypto arbitrage traders make use of the price discrepancies and perform a sequence of transactions to make a profit from it.
Crypto arbitrage trading is a great income generation strategy for both crypto investors and various crypto platforms. Neosify, among others, has come up with its own crypto arbitrage method – algorithmic arbitrage.
Algorithmic crypto arbitrage is a little bit more complex in comparison to triangular or classic exchange arbitrage. The process includes several trades instead of one, all of which are usually carried out on many different exchanges. This method takes different crypto pairs, trading through each of them until you are back to the original asset.
How we do it
Neosify Matrix technology uses an algorithm to scan hundreds of coin pairs simultaneously across 30 different decentralized crypto exchanges looking for price inefficiencies. Next, it sets the sell order and generates a profit by buying the pair on the exchange with the lowest price and then selling wherever with the highest price.
As for the traded crypto, Neosify trades wrapped Bitcoin and wrapped Ethereum – the tokenized versions of the original currencies used to make it easier to handle transactions occurring on the decentralized finance ecosystem. Matrix technology is also capable of the stablecoin arbitrage – it monitors price slippages associated with either characteristic issues with a particular stablecoin breaking their peg or the crypto exchange where a stablecoin is being traded. Matrix technology is designed to take into account such price slippages.
Why is it a low-risk strategy?
By taking advantage of arbitrage opportunities, traders or platforms can generate profits without having to evaluate market forecasts or falling for the influencers’ emotional games. Another good thing about crypto arbitrage is a safe exit strategy – any trader can exit arbitrage trading in seconds without losing 30% of their assets or more. Apart from that, arbitrage trading suggests fast profits. Thanks to Matrix technology, the price inconsistency for a trading pair is spotted as soon as it appears across exchanges, with the profits made as soon as the transaction is conducted.
It is also important to note that crypto arbitrage strategy can be applied even when the market is still. Price deviations happen all the time, no matter how volatile the situation with a certain currency at the moment.
Neosify is always thinking ahead. We do not only make the best use of Matrix technology to provide liquidity to the platform, but also analyze the relevant usage and offer our users fair crypto interest rates. Neosify doesn’t believe in big words – we only find the most relevant approaches to making crypto work in the world where its price can change faster than we would want it. Join Neosify and earn 36.5% APY without checking in with the crypto price all the time. Make your crypto feel at home, only on Neosify.