Build an arbitrage bot for a US-based crypto trader and investor.
About the Project
About the Project
Arbon is an arbitrage bot built by our Blockchain developers to engage in fast-tracking
pricing discrepancies across multiple cryptocurrency exchanges.The bot identifies
pricing of cryptocurrencies across exchanges and performs triangular arbitrage or cross
exchange trades based on identified opportunity. Read the success story below.
Client Requirements
The client reached out to us with a vision where they expected us to develop a highly
efficient crypto arbitrage bot able to generate profit on every trade. The application
would showcase high efficiency and effectiveness during real-time cryptocurrency trading
followed by detecting pricing differences across exchanges for the same cryptocurrency.
This arbitrage bot analyzes the pricing differences on multiple exchanges. After
calculating the profits, the bot executes trades.
With growing competition in the market, arbitrage bots have emerged as popular
cryptocurrency trading tools.
James H Project Manager
“While working on the client's idea, we considered multiple arbitrage algorithms,
i.e., triangular and direct, and we ended up implementing both triangular and
cross-exchange arbitrage algorithms in our bot.”
Our Solutions
Our Solutions
Before reaching out to us, the client was trading cryptocurrency all by himself. It
restricted him to a few trades on a daily basis and made it a tedious job to access pricing
across platforms. Hence, the client wanted to increase the amount of trades and subsequent
profits by automating this process.
We conceptualized a process through which the client could utilize an effective arbitrage
trading.
The process initiates by reading data, checking the number of transactions, and calculating
respective profits.
We set a profit amount with the corresponding number of transactions. Our developers ensured
that the arbitrage bot built by us featured compatibility for both direct and triangular
algorithms.
Process Cycle
For Cross-Exchange Arbitrage
Scenario 1:BUY — SELL
In this trade cycle, we take ETH and USDT tokens.
The process begins when the bot will buy ETH for USDT at one exchange.
Simultaneously, the bot will sell ETH for USDT on the other exchange.
Bot makes profits through arbitrage.
For Triangular Arbitrage
Scenario 1:BUY — BUY — SELL
In this trade cycle scenario for arbitrage, we take three assets, for example, Ethereum
(ETH), Tether (USDT), and Bitcoin (BTC).
The process begins by buying BTC using USDT.
Next, the bot buys ETH with BTC.
In the final stage trade, the bot sells ETH using USDT.
Scenario 2:BUY — SELL — SELL
In this trade cycle scenario for arbitrage, we take three assets, for example, Ethereum
(ETH), Tether (USDT), and Bitcoin (BTC).
The process begins by buying ETH using USDT.
Next, the bot sells ETH for BTC.
The final phase of trade comprises selling BTC for USDT.
Our arbitrage bot uses both of the aforementioned strategies, i.e., cross-exchange and
triangular
arbitrage, to check feasibility and profitability for crypto trades.
Technology
Technology Stack
Exchanges used: Binance, Coinbase, KuCoin, FTX.
Technologies Involved: NodeJS, NestJS, React.js
API/SDK being used: Exchanges API/SDKs for price tracking and buy/sell functionality
This crypto arbitrage bot has showcased fast automation of price discrepancy
identification.
Henry Brunt
“By using this bot, we could automate and engage in fast and effective arbitrage
trades. The product has helped us gain an increased amount of profits through a
hassle-free process.”
Results
Results
Our developers have integrated multiple cryptocurrency exchanges such as Binance, Coinbase,
KuCoin, Ftx, Gate.io, etc., on this arbitrage bot. It has allowed the client to earn an
increased amount of profits.
100+Transacitons in a dayLess 1Less 1 less than 1 minute80%80% More than 80% profitable
transactions
