Cryptocurrency Arbitrage: Know More with Coins.co.th
Nowadays, people might be more familiar with Cryptocurrency as the idea appears to have distrupted what has been going on in our society. Most certainly, everyone wants to make the most out of their cryptocurrency investments.
The easiest and most secure ways to make a profit from Crypto that major traders perform are the technical analysis from the price graph to decide when to buy and when to sell, or, do the mining Crypto. However, today we would like to introduce an alternative that could be easier and more convenient as you do not need to have in-depth Crypto information.
It is Arbitration!
For example, Bitcoin has its value in market A at 1,200,000 THB and 1,000,000 in market B. Consequently, if you buy BTC from market B and sell it in market A, you can make 200,000 THB per coin.
BUT WHY IS THERE A PRICE DIFFERENCE BETWEEN MARKETS?
Cryptocurrency is a digital asset that can be transferred anywhere in a very short time and all the time. Since every market has its own demand and supply, a market that has higher demand will have a higher price than the one that has less demand. The moment that 2 markets have different prices can lead to Arbitration.
The core of Arbitration is to buy things at a lower price than selling them. By this method, prices in the 2 markets will adjust to being at the same rate.
THERE ARE THINGS YOU MUST BE CAUTIOUS ABOUT!
First, transaction fees of each market can be different. Another is transaction duration; if it takes too long to transfer, the prices can change.