The term arbitrage is common in the world of investment. It is possible to do arbitrage in cryptocurrency too. What is arbitrage?
According to Oxford’s definition, it is the practice of buying something in one place and selling it in another place where the price is higher.
In terms of cryptocurrency, it is like buying Bitcoin from an exchange and sell it on a different exchange for a higher price. Such activity allows users to gain profit other than trading Bitcoin on a single platform.
The Malaysian market
There are three regulated Digital Asset Exchanges (DAX) in Malaysia. Malaysians can buy, sell or hold cryptocurrencies through the service provided by Luno, Tokenize, and Sinegy.
Therefore, it is not impossible to find an arbitrage opportunity in the market. However, the network and transfer fees should be considered before making a trade. The fees vary between exchanges.
Sinegy Arb Scanner
Did you know that Sinegy has an arbitrage tool that helps you to find arbitrage opportunities?
You can access the tool here. For now, the tool shows the arbitrage opportunity for the Bitcoin market because Sinegy only supports Bitcoin for now.
The tool is accompanied by easy-to-follow texts and margin percentages. Pretty straightforward!
Believe it or not, most experienced and seasoned traders gain more profits through arbitrage.