Crypto Arbitrage
Exploring the so-called ‘3-way arbitrage'trading strategy on Binance crypto currencies. Is this hype or can it be profitable? Exactly what a concept! Make 3 trades in rapid succession when you find favorable exchange rates and voila! Profits in seconds and no experience of volatility. How does this work? Let's break this down employing a ridiculously simple bartering scenario. When we exchange one crypto-currency for another we're bartering or exchanging fungible assets. Let's image the following scenario: Jane has 10 almonds Will has pineapples and will trade each for 5 almonds Christine has mangoes and will trade evenly for a pineapple Xavier has almonds and will trade 6 for each mango So in this arbitrage opportunity, Jane trades 10 almonds for 2 pineapples, and these for 2 mangoes which then she trades for 12 almonds. She has profited 2 almonds through these trades as a result of anomalies in the exchanges . Above is exactly the same type of 3-way arbitra