Quick Overview: Our Top 3 Cryptocurrency Arbitrage Bots 2021
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Crypto arbitrage trading is amongst the best ways to bank profits in the crypto market. Essentially, crypto arbitrage is purchasing a crypto asset on one exchange and immediately selling that asset on another exchange at a higher price for banking profits by exploiting the price difference. Nonetheless, arbitrage opportunities last only for a few seconds or less. Let’s be honest; you cannot be that fast. As soon as you transfer funds on another exchange to leverage the price gap, the price difference no longer exists.
To profit from crypto arbitrage, you need to deploy a crypto arbitrage bot that executes trades on your behalf. Bots execute trades in seconds, allowing you to benefit from the arbitrage opportunities. Which crypto arbitrage bot to choose, you ask? Let’s find out!
Top 4 Crypto Arbitrage Bots You Would Love Trading On
Cryptohopper has taken the crypto arbitrage game to a level higher. It offers triangular arbitrage that allows you to leverage the price differences between three different cryptocurrencies on a single exchange or multiple crypto exchanges.
Thanks to this triangular arbitrage feature, Cryptohopper is a step ahead of Bitsgap. Another essential feature is that Cryptohopper allows you to make arbitrage trades without withdrawing funds from your exchange. It offers two types of arbitrage opportunities.
A) Exchange Arbitrage
What if I tell you that you don’t need to send funds to execute arbitrage trades? Yes, you heard that right. With Cryptohopper, you don’t need to transfer funds from one exchange to another. Instead, connect the exchanges you have funds on, and that’s it; Cryptohopper will start searching for arbitrage opportunities.
Cryptohopper also allows you arbitrage between multiple crypto exchanges. All you need is to connect all your exchanges, select your trading pairs and start executing arbitrage trades. Here, you can choose numerous exchanges and multiple trading pairs.
B) Triangular Arbitrage (Market Arbitrage)
With Cryptohopper’s triangular arbitrage, you can capitalize on price differences between cryptocurrencies of the same exchange. As for crypto exchanges, Cryptohopper supports 14 prominent exchanges, including Kraken, Binance, HitBTC, and Coinbase Pro, among others. Also, thanks to its autonomous mode, Cryptohopper provides unlimited cryptocurrency pairs for you to profit from. Cryptohopper has two pricing tiers for arbitrage trading –
Adventurer Pack – Only for exchange trading. It costs $49 per month and $498.96 a year.
Hero Package – Both exchange and triangular arbitrage. It costs $99 per month and $999 per year.
Bitsgap is amongst the most popular crypto arbitrage bots, and it is not difficult to see why. It has everything you would look for in a crypto arbitrage bot – several crypto exchanges and crypto pairs, an AI-powered system, and an easy-to-navigate UI.
.Bitsgap crypto arbitrage bot is a cloud-based bot that allows you to benefit from the price differentials between Binance, OKEX, Kraken, Coinbase, Houbi, and over 25 other cryptocurrency exchanges.
In addition, this arbitrage bot has a rich collection of crypto and fiat arbitrage opportunities for you to trade on. For example, you can trade ETH/USD, LTC/USD, XRP/USD, EOS/EUR, and over 1000 such pairs. To execute arbitrage trades on Bitsgap, you need to deposit fiat cash on one exchange and cryptocurrency on the other exchange.
Then, your arbitrage deals are calculated based on your account balance. Also, your fees charged by crypto exchanges are included within the profit The best part about Bitsgap is that you can execute arbitrage trades in just one click. All thanks to their AI-powered system. Moreover, Bitsgap crypto arbitrage is non-custodial.
This implies your money is yours; your funds are securely held at the crypto exchange and connected using API keys. Talking about the pricing, Bitsgap has three pricing structures – Basic ($19 per month), Advanced ($44 per month), and Professional ($110 per month).
Pionex crypto arbitrage bot allows you to make spot-futures trades between Binance and Huobi. The best part about Pionex is that the Binance broker system powers its spot-futures arbitrage bot.
For those who don’t know, holding a short position in the perpetual futures market while keeping the same position in the spot market and executing an arbitrage trade with a market-neutral position is called spot-futures arbitrage. Talking about payouts, Pionex offers 15-50% APR on spot-futures arbitrage. And guess what, you get paid every 8 hours.
Another major highlight is that Pionex charges very low fees. Its entire arbitrage package costs 0.05% in fees while the bot is free. So, if you are looking for a low-cost, high-return spot-future arbitrage bot, Pionex could be your go-to.
4. Blackbird Bitcoin Arbitrage
Blackbird is a Bitcoin arbitrage software that executes long and short Bitcoin arbitrage opportunities between several Bitcoin exchanges. Similar to Cryptohopper, Blackbird also offers triangular arbitrage opportunities. The only difference is that it only supports Binance for triangular arbitrage.
The best part is Blackbird Bitcoin arbitrage bot is free to use; you don’t need to pay anything. However, you need some coding knowledge to customize it. Blackbird stands out amongst other Bitcoin arbitrage bots as it short sells Bitcoins on the short exchange.
This way, you can execute a market-neutral strategy, thereby making you somewhat immune to Bitcoin price fluctuations. Moreover, Blackbird doesn’t require you to transfer funds between Bitcoin exchanges. Instead, trades are parallelly executed on two distinct exchanges simultaneously.
Thanks to this, your trades would be executed quickly that would otherwise take time due to latency issues of the Bitcoin network. In short, if you wish to arbitrage Bitcoin prices and know-how to code, you should consider the Blackbird Bitcoin arbitrage bot.
What Is The Difference Between Arbitrage Bot And General Trading Bots?
Technically, crypto trading bots are computer programs that place buy and sell orders on crypto exchanges based on the pre-defined rules in the trading strategy. For instance, you can program a bot to sell a certain amount of your BTC holdings if its price reaches a particular limit. General crypto trading bots can make trades based on several trading strategies.
Nonetheless, crypto arbitrage bots are exclusively designed to draw profits from crypto arbitrage opportunities. First, these bots scan several exchanges for price differences of the same crypto asset. Next, they buy and sell that asset in a way that results in a net profit.
How To Choose A Crypto Arbitrage Bot?
Several arbitrage bots are providing competitive features. However, selecting one sometimes becomes difficult. To make your job easier, here’s what you should consider while selecting a crypto arbitrage bot.
How Safe Are Your Funds?
The trading bot you select should have private API keys for your exchange. Not only the trading bot, but make sure you also keep certain safety measures in mind. Firstly, avoid trading on unknown or exchanges which are hacked frequently. Secondly, disable withdrawal access before you hand over your API keys.
Which Exchanges Does The Arbitrage Bot Support?
The more crypto exchanges an arbitrage bot supports, the better are your arbitrage opportunities. So, make sure your crypto arbitrage bot supports a good number of prominent crypto exchanges. As for arbitrage bots on our list, Bitsgap supports over 25 crypto exchanges, including big names like Binance, Kraken, and Coinbase Pro, among others.
On the other hand, Cryptohopper is linked with 14 exchanges, including Bittrex, Bitfinex, HitBTC, etc. Lastly, BlackBird Bitcoin Arbitrage Bot is integrated with OKCoin, Bitsamp, Gemini, and Kraken.
Does The Crypto Arbitrage Bot Justify Its Price?
Pricing is crucial while making your crypto bot purchase. Firstly, the arbitrage bot should fit your budget. Second, and most importantly, the crypto bot should justify the value they charge for. For instance, Bitsgap’s advanced plan costs $44 per month ($35 billed annually). Although it’s not the cheapest, it provides excellent features at that price point. Also, Bitsgap’s advanced plan is more affordable than the adventurer package on Cryptohopper.
Is The Arbitrage Bot Easy To Use?
Some crypto arbitrage bots are easy to use as they cater to non-coders, while some require some coding knowledge. For instance, Blackbird Bitcoin Arbitrage Bot requires you to write some code to customize it. Keeping this in mind, select your bot based on your technical preferences.
Does The Arbitrage Bot Have A Good Community?
The number of existing users of an application speaks a lot about the quality and reliability of its services. So, before you consider buying an arbitrage bot, you should read customer reviews and check their customer base. Another important factor is an active community of users as they help you if you come across some issues.
For example, Bitsgap Telegram channel and Cryptohopper’s Facebook page have over 5,000 members each. What Is The Connection Speed And Update Frequency of The Arbitrage Bot? The price difference in the same crypto-asset between several exchanges exists only for few seconds or sometimes only for fractions of a second. The crypto arbitrage bot must be fast enough to scan arbitrage opportunities before they disappear.
Moreover, the crypto market is dynamic; blockchains, exchanges, smart contracts, APIs, and other associated technologies update frequently. To be compatible with the exchanges and the APIs, you should update your crypto bot frequently. Keeping this in mind, always check when the crypto bot was last updated before you buy it.
FAQs On Arbitrage Bots
Is Crypto Arbitrage Legal?
Yes, crypto arbitrage trading is 100% legitimate. It is simply capitalizing on the crypto price differences between multiple exchanges. This is a prevalent strategy in other asset classes like stocks and commodities. There is no legal clause that bars people from making use of price differences at the time of writing this.
Is Crypto Arbitrage Profitable?
Crypto arbitrage is indeed profitable, given your strategy is right. However, your crypto bot needs to be extremely fast to arbitrage crypto, as arbitrage opportunities last for seconds. An ideal approach would be to backtest strategies with a small test amount before adding more funds.
Cryptocurrency arbitrage trading is becoming more and more popular every passing day. Well, who doesn’t wish to benefit from price differences when there are crypto arbitrage bots available? Crypto arbitrage bots make your job easier. All you need is to connect your exchanges and execute trades based on an arbitrage strategy. With the arbitrage bots mentioned in this article, you would be able to take advantage of crypto arbitrage opportunities in the market and earn good profits, given you use the right strategy.
Anish loves reading, researching, and writing about crypto and blockchain. He started his crypto journey early in 2017, what started as a fad is now a full-time hobby. He curates guides after thorough research on platforms and is responsible for the most in-depth guides on the site. You will find him walking his dog (not Doge) when he is from his Laptop.