This comprehensive guide is designed to help you identify the top exchanges that offer the most lucrative opportunities for triangular arbitrage. We’ve compiled a crypto arbitrage list that includes the best arbitrage crypto exchanges, each offering unique features and benefits to optimize your trading strategy.
Our guide to the best crypto exchanges for arbitrage will provide you with the insights you need to make informed decisions and maximize your profits. Dive into our review and discover the platform that best suits your arbitrage trading needs.
If you don’t know anything about arbitrage trading, you might lose money. To avoid such situations, we compiled a list of the best crypto arbitrage bots. These tools are easy to use and provide real-time data. They help you find the best arbitrage opportunities and execute trades automatically.
The reason why crypto arbitrage works is that there are many different exchanges out there, offering the same coins at different prices (btw. if you want to know the reason for different prices on different exchanges, click here).
By buying Bitcoin on one exchange and selling it on another, you can take advantage of these differences in prices to make money.
| 🤖 Exchange | 📋 Features | 👍 Pros | 👎 Cons |
|---|---|---|---|
| Binance | Comprehensive range of trading options, market charts, and hundreds of cryptocurrencies. Offers numerous order types and a range of trading derivatives. | High trading volume, extensive instructional platforms, and an NFT platform. | Not available for US users. |
| KuCoin | Wide range of built-in trading bots, trading derivatives, and earn programs. | High trading volume, early listings, and support for small cap coins. | Not regulated. |
| Phemex | Offers leverage trading up to 100 times initial investment, options to earn income, and free real-time transactions for premium account users. | Broad range of services, high trading volume. | Availability to Americans may vary by state. |
| Kraken | Supports more than 150 trading pairs. | High liquidity in terms of Euro volume. | Advanced dashboard is too complicated to inexperienced traders. |
| Gate.io | Offers a cryptocurrency derivative for arbitrage or hedge using flexible leverage. | High trading volume, commitment to user experience and security. | Low number of supported fiat currencies. |
| Bybit | Offers a comprehensive selection of cutting-edge trading tools. | Excellent security, commitment to no downtime, high trading volume. | Not offered in the United States. |
What you'll learn 👉
What are the best exchanges for crypto arbitrage?
The best ones are those that have high liquidity, low fees and fast order execution time. They also have to have a lot of different coins and trading pairs. So, the list goes as follows:
Binance
Binance is one of the biggest cryptocurrency exchanges and one of the crypto unicorns. This exchange has completely taken over the cryptocurrency market and has surpassed its rivals to claim the top spot in practically every cryptocurrency ranking available. It regularly tops the ranks exchanges in trading volume and has hundreds of listed tokens.
Binance provides a comprehensive range of trading options through its desktop or mobile dashboards, including an excellent variety of market charts and hundreds of cryptocurrencies. Additionally, users have access to numerous order types and a range of trading derivatives, such as futures and options.
Since Binance is not available for the US users, they launched Binance US for the American citizens. However, only 65+ of cryptocurrencies are available to U.S. clients, and many options and services are not available there (ever wonder why are so many exchanges banned in the US?)
Binance provides extensive instructional platforms, an NFT platform, and more in addition to its tools and services.
KuCoin
KuCoin is one of the most popular exchanges in the world, famous for its early listings and support for small cap coins and hence dubbed as the gem hunters’ favorite exchange. It regularly ranks among top 5 exchanges in trading volume and has hundreds of listed tokens.
One thing that stands out on Kucoin is their wide range of built-in trading bots, including Arbitrage, Spot Trading Bots, Futures Trading BOTS, rebalancing bots, and even a DCA Bot.
Additionally, KuCoin provides all kinds of trading derivatives like futures, options, margin trading, leveraged tokens etc. Also, KuCoin has their earn programs where you can earn interest through lending, staking and other yield generating features.
Phemex
The cryptocurrency exchange Phemex offers a broad range of services. It takes credit card deposits and provides leverage trading up to 100 times your initial investment. Phemex offers options to earn income in addition to providing paid premium account users with free real-time transactions.
It regularly ranks among top 10 exchanges in trading volume and has hundreds of listed tokens.
Although Phemex is available to Americans, it is advisable to check your state’s regulations before using it, as this is a factor that affects our ranking.
Kraken
In terms of euro volume, liquidity, and the trading of US dollars, Canadian dollars, Japanese yen, and British pounds, Kraken is one of the biggest cryptocurrency exchanges.
Kraken supports more than 150 trading pairs, so cryptocurrency arbitrage traders will have a real feast on Kraken.
Gate.io
Gate Technology Inc. runs the website Gate.io. Gate.io is committed to user experience and security, providing users with not just a safe, straightforward, and fair Bitcoin exchange but also a guarantee that your asset and transaction information will be kept private.
It regularly ranks among top 5 exchanges in trading volume and has hundreds of listed tokens.
With a cryptocurrency derivative, you can go long or short, depending on how you think the market will go in the future. You can arbitrage or hedge using the flexible leverage offered by Gate.io. Leverage can go up to 100X.
ByBit
A bitcoin derivatives exchange with a comprehensive selection of cutting-edge trading tools is called Bybit. It offers excellent security and a commitment to no downtime, but it is not offered in the United States.
After seeing the promising potential of cryptocurrency trading two years prior, Ben Zhou co-founded Bybit in 2018.
It regularly ranks among top 10 exchanges in trading volume and has hundreds of listed tokens.
Along with its feature-rich trading tools and incredibly user-friendly desktop and mobile apps, one of Bybit’s best aspects is its trading experience. Bybit’s mobile app spends 20% more on platform security each year than the industry standard of 15%.
What makes an exchange a good place for crypto arbitrage
In order for the exchange to be a good fit for crypto arbitrage, the platform needs to have a few conditions. The mains are:
- Low fees
- Liquidity
- Fast order times
- A lot of listed coins
What are the risks of crypto arbitrage trading?
Crypto arbitrage strategies are one of the most popular ways to make money online because of how easy it is to execute. However, there are some risks involved with this type of trading. One risk is slippage, which occurs when the value of a cryptocurrency moves against you.
Btw. here are some other crypto bot trading strategies that yield good results.
Before starting any trade, you should make sure that the platform you intend to utilize has enough liquidity. You can check out the trading volumes of the market before investing on CoinMarketCap or Coingecko. A high number of trades indicates that the price may change quickly, thus increasing the chances of winning big.
Some exchanges only support certain coins and tokens, so if your chosen cryptocurrency is not listed, you won’t be able to trade it.
The best way to mitigate these risks is to use stop losses and take profit levels. This way, you won’t lose too much money if the market doesn’t move in your favor, and you won’t miss out on huge gains if the market does go up.
Why Use a Crypto Arbitrage Bot?
Crypto arbitrage bots are one of the most effective ways to make money in the cryptocurrency space. You might think that there aren’t many advantages to using them over traditional methods like buying low and selling high. However, there are actually quite a few benefits to using them, including:
1. You don’t have to be near a PC at all times.
2. You can automate your trades based on your custom settings.
3. You can find profitable strategies quickly with the tools offered by these bots
4. You can use multiple exchanges simultaneously from a single dashboard.
5. You can trade without worrying about slippage since bots don’t send coins from one exchanges to the other but keep them on the exchange.
6. You can trade across different markets and trading pairs.
Which crypto arbitrage bot is best to use with these exchanges?
All of these bots use either the simple arbitrage or the so-called triangular arbitrage.
The simple arbitrage works with the same coin but on different exchanges. The bot buys the coins on one exchange where it is cheaper and sells it on the second exchange where it is more expensive.
Triangular arbitrage is an opportunity to make money when there are three coins with different exchange rates. Traders can buy the cheaper currency, change it into a more expensive currency, and then sell the more expensive currency. This usually happens on different exchanges.
The prices of cryptocurrencies change a lot. This is mostly because you can’t usually use traditional ideas about investing and be successful. There are a lot of unknown things that can affect the price of a cryptocurrency. Arbitrage strategies, like Triangular Arbitrage, aren’t very risky and try to make money no matter what happens in the market. They don’t need to be watched as often as other, riskier strategies.
Since quotes and trade orders need to be done quickly, this strategy can really only be done with API trading services where crypto bots excel.
Pionex
Pionex is a crypto trading bot that offers free built-in cryptocurrency arbitrage trading bots for beginners and advanced traders alike. With this bot, you will be able to make profits just by sitting at home while it does the work for you. You don’t even need to know how to trade or what the market is doing since you can copy trading parameters from other Pionex users (more experienced with proven track record).
The bot uses real-time data feeds and liquidity from multiple exchanges, including Huobi Global and Binance, the world’s largest crypto exchange. If you’re looking for a way to earn money passively online without having to spend hours every day manually monitoring the markets, then look no further.
There are different types of bots available depending on your needs and experience level. Some people prefer grid trading bots because they allow you to place trades according to predefined rules. Others like rebalancing bots because they automatically rebalance positions based on predetermined criteria.
And others still opt for spot-futures arbitrage bots because they provide quick execution times.
Bitsgap
Bitsgap is another all-around trading platform offering both manual and automated crypto trading.
Best for starters and advanced users both. Bitsgap is probably the most popular cryptocurrency arbitrage trading bot for beginners who want a quick way to enter into the world of cryptocurrencies.
With Bitsgap, you can simply follow pre-set instructions to begin trading. You’ll find out about the best times to buy and sell during the day. Then you just sit back, relax, and let the bot take care of the rest.
The best thing about Bitsgap is that it provides you with ready-made trading strategies. So there’s no need to spend hours studying charts and technical analysis.
If you’re looking for something different, Bitsgap is definitely worth checking out. Here is a full review of Bitsgap arbitrage bot.
Cryptohopper
Cryptohopper is a crypto arbitrage bot that lets you manage all your crypto exchange accounts in one convenient location. With this tool, you can easily trade cryptocurrencies without having to log into each individual account. It allows you to monitor market conditions and make trades based on the most profitable opportunities.
You can use this arbitrage robot to earn money by exploiting price discrepancies across exchanges. By buying low and selling high, you can generate profits even if there are no significant changes in the market prices.
Cryptohopper automatically makes trades based on the differences in values between multiple trading pairs on different exchanges. For example, it might buy a coin at $10,000 per coin on one exchange and sell the same coin for $10,100 on the second exchange. In this case, the bot earns you a $100 profit by taking advantage of the price difference between the two exchanges.
3Commas
3Commas is a platform that runs in the cloud and can handle up to 20 exchanges. Beginners can start by trying out their strategies with “paper trading.” Their SmartTrading tool is useful for advanced traders because it lets them trade from multiple exchanges and pairs from within their simple interface.
3Commas lets you try out all of the features of their Pro package for free for 3 days. They offer subscription plans for $22, $37, and $75 per month. A 6-month subscription gets a 15% discount, and a 1-year subscription gets a 25% discount. If you want to use market signals, you have to pay for an extra subscription through their Marketplace.
FAQs
Arbitrage is a trading method for cryptocurrencies that may be successful. By taking advantage of differences in asset prices, you can generate respectable returns from this technique with enough start-up money and discipline.
Yes, KuCoin does have an Arbitrage bot.
Yes, you can lose money with crypto arbitrage. Some risks around crypto arbitrage include slippage and sudden price movements.
Crypto arbitrage is a legitimate and legal approach to potentially making money when an asset is selling for less on one platform and for more on another.
Arbitrage profits are subject to marginal taxation. Cryptocurrency arbitrage gains are regarded as trading income and are subject to your marginal tax rate.
Yes, it’s profitable, depending on how well the cryptocurrency arbitrage bot performs and what trading tactics it uses. Market variables, including volatility, demand, supply, and others, influence profitability as well.
