There’s a common myth that arbitrage opportunities for bitcoin no longer exist because the crypto market has matured to the point that the price of BTC is consistent across trading venues.
Bitcoin arbitrage opportunities of 5% or more are still out there: traders just need to be prepared to act on them immediately because they’re often gone in a minute or less.
Today, SFOX is pleased to announce the rollout of its Bitcoin arbitrage tracking system: an actionable network of notifications designed to let SFOX traders capture every bitcoin arbitrage opportunity with ease.
You can now get notifications of all BTC, ETH, LTC, BCH, BSV, ETC, and RVN arbitrage opportunities of 50 bps and greater, complete with hyperlinks allowing you to quickly access the correct pair on your SFOX account to capture that arbitrage opportunity. (At current BTC prices, a 50-bps arbitrage on 1 BTC would come out to roughly $50 of profit instantly with very little risk.)
You can access the Bitcoin arbitrage tracking system in four different ways:
- Follow its dedicated Twitter account and turn on sound notifications
- Follow its Telegram and turn on notifications
- Follow it on Stocktwits and turn on notifications
- Join its Discord server and on sound notifications
SFOX’s Bitcoin arbitrage tracking system is designed to make it easy for traders to capture the kinds of crypto mispricings that are still relatively common yet ordinarily very difficult to identify and act on. As an example, consider the 6.8604% BTC/ LTC that popped up between Binance and Bittrex on May 15th, 2020:
I thought this had to be an error, but it was real. Was gone within a minute, but a great 6% arb between binance and bittrex – all from your single SFOX account.
— Daniel Hinton (@DanielLHinton) May 15, 2020
There are two major hurdles to capturing opportunities like this:
- You need to identify the opportunity in this first place. With dozens of leading crypto trading venues and different BTC trading pairs, it’s virtually impossible to recognize significant arbitrage opportunities between them unless you have a robust, automated system for watching and comparing their order books in real-time.
- You need to be able to act on the opportunity in a timely manner. The above bitcoin arbitrage opportunity was only available for one minute. If you try to manually capture these arbitrage opportunities by moving your own funds directly onto the relevant exchanges when the arbitrage opportunity arises, chances are good that it’ll be long gone by the time you get your funds into position—not to mention that the fees you may incur by moving money onto and off of those exchanges could eat significantly into any arbitrage opportunity you’re trying to capture. And on top of all that, some crypto exchanges are hard to access in certain regions of the world, making it hard for traders to get funds there in the first place. (For example, Bitflyer is hard to access in the U.S., which is actually one of the reasons for some of the arbitrage opportunities that arise between it and other platforms.)
When used in conjunction with an SFOX trading account, SFOX’s Bitcoin arbitrage tracking system clears both these hurdles and provides traders with the best chance to capture any and all bitcoin arbitrage opportunities that arise. Here’s how it works:
- Because SFOX’s trading platform is plugged into all major bitcoin trading venues, we monitor all of their order books and compare their tick data in real-time. That allows us to constantly compare their top-of-book prices for BTC and other cryptocurrencies—and notify you whenever an arbitrage opportunity arises.
- SFOX stores and balances its own funds on all major crypto venues in order to allow you, our traders, to trade on all of these venues directly from your SFOX account without needing to worry about moving your own funds between exchanges (not to mention the fact that you don’t have to trust a wide range of exchanges with responsible storage of your funds). That means that, as long as you have funds in your SFOX account, you can capture any Bitcoin arbitrage opportunity simply by buying and then selling BTC on SFOX, or vice versa—even if those opportunities are on exchanges you wouldn’t otherwise be able to access easily (such as Bitflyer).
The result is that it’s now dead-simple to hunt down every arbitrage opportunity in the crypto sector. Just follow these three steps and you’re good to go:
- Open and fund an SFOX trading account.
- Follow the SFOX Bitcoin arbitrage tracking system on Twitter, Telegram, Stocktwits, or Discord, turning notifications on. Make sure you’re still logged into your SFOX account.
- Whenever you’re notified of an arbitrage opportunity, just click the link in the notification to go directly to the appropriate order book on the SFOX trading platform, allowing you to trade on the arbitrage in a matter of seconds.
That’s all there is to it. Capturing bitcoin arbitrage doesn’t have to take more than a few clicks. Welcome to the latest way SFOX is providing its traders with unique edge.
Have you already been enjoying the benefits of SFOX’s Bitcoin arbitrage tracking system? Are there any tweaks to the system or new features you’d like to see us add in the future? Let us know what you think in the comments!