In principle arbitrage is one of the simplest and most profitable ways to trade.
It requires only to but a financial asset a lower price in one place and sell it simultaneously for a higher price in another place.
To take one example, you might buy $1200 an ounce in one market, then at the same time sell it for a $1210 an ounce in another.
When performed correctly and allows the trader to make riskless profits. And compounded over time these profits can really add up.
Cryptocurrencies would seem ideal for arbitrage traders.
Cryptocurrencies can trade at widely different prices on different cryptocurrency trading platform.
With a huge number of these cryptocurrencies available, every single day there is a huge number of opportunities for arbitrage trading.
So far so good
The problem is when we take the principle of arbitrage trading with cryptocurrencies and apply it to reality.
Moving funds between cryptocurrency exchanges can be challenging. In order to execute arbitrary trades you need to have funds available in each exchange.
Transaction delays and the variations in user interfaces between exchanges make the process even more complicated.
As many arbitrage traders discover what seems like a profitable trade can quickly turn into one that loses money.
So much for riskless trades.
That is until now.
Multibot Is the new decentralised platform which makes analysing in trading between cryptocurrency exchanges significantly easier. To enable this it is offering users of it platforms a range of different tools.
Chief among these will be it arbitrage trading tool. .
Multibot Is offering a “one window” Solution. This will enable Traders to use a single window pane to look at a range of cryptocurrency pairs across multiple different exchanges and then to execute trades when profitable arbitrage opportunities are identified.
See the picture below:
And this is just one of the tools that is going to be offered in the Multbot arsenal.
Multibot is rolling out a host of different tools which solve some of the main pain points that traders have when working with multiple exchanges.
Problems like how to automate trades between different exchanges.
Or how to see at a glance the different pricing and volumes for various tokens.
And how to ensure that you don’t have too many funds at a single exchange.
All of this is going to be delivered as a SAAS product. That means that users won’t have to download any software in order to make use of the tools.
In order to fund the launch and development of these tools, Multibot is running a token sale. tIt is offering up to the public the Multibot (MBT) token.
Owners of the MBT token will be eligible to receive 50% of the profits that the Multibot platform makes from offering these tools to traders. The payments will go out on a quarterly basis.
If you want to learn more about Multibot or find the latest announcements you can read more on the Multibot ANN tread on Bitcointalk here: https://bitcointalk.org/index.php?topic=2248394
Or if you want to participate in the token sale visit: https://multibot.io/