arbitrage Bitcoin News

Where Can You Find The Best Price To Buy Crypto?

There are so many cryptocurrencies and so many exchanges in the market.
How about the prices among all these different exchanges? Just a small price difference? Certainly NOT! Take Bitcoin for example, the price difference can be 21% at the same time! The exchange with the best liquidity is the place with the best price? Hmm, not really.
Then how can you find the best price to buy crypto in order to maximize your profit? The 3 products below are what you need.

Cryptoradar - Find The Best Places To Buy Cryptocurrencies

Cryptoradar covers 15 cryptocurrencies and 3 fiat currencies. You can find the best buy and sell prices for Bitcoin, Ethereum, Ripple, Cardano, Monero, Tezos, Chainlink, Litecoin, etc. 3 fiat currencies are supported - USD, GBP and EUR.
Just simply choose the crypto you want to buy or sell and click search. You will see all the prices of different exchanges around the world. You can choose the criteria according to your preferences on the left-hand side.
What makes your trade not so convenient is that you need to go to different exchanges to register and buy crypto.

Swapzone - Exchange 211 Crypto At Best Price

If you are an altcoin lover, you must have a look at Swapzone. It covers the most cryptocurrencies of different prices in 9 exchanges all over the world.
Instead of just comparing the price, it also considers the amount of crypto you can buy at a certain price. Simply choose the crypto you want to buy/sell, enter the amount you want to exchange, then you will see all the offers available. Select an offer in the list, click “exchange”.
The most convenient point is you do not need to go to that exchange to register and go through all the KYC process. You can do it at one stop in Swapzone.

Bitpreco - Best Place If You Live In Latin America

If you live in Latin America, Bitpreco is the best place for you to find the best price. It only supports 3 main cryptos - Bitcoin, Ether, and USDT. You can find the buy/sell prices of these 3 cryptos to BRL fiat.
The other function you can explore is the arbitrage. Bitpreco lists the current buy price and sell price. You can find the arbitrage opportunity directly.
What’s more, you can do the arbitrage at one stop in Bitpreco after your registration.
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submitted by dapp_com to CryptoMarkets [link] [comments]

Overview of Asset-Backed Tokens

Overview of Asset-Backed Tokens


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What are asset-backed tokens?

Asset-backed tokens, a growing class of tokens, are by definition worth exactly what they are backed by. For instance, a representative token that corresponds to a real-world asset such as a unit of fiat currency, a security or even gold, will be valued at a 1:1 ratio. They are assets represented as tokens to be transferred and traded trustfully on a blockchain. Although tokens, most of the asset-backed tokens are classified as securities throughout the globe. More obvious is the tokenization of real estate, art, derivatives markets, attention, and other non-fungible assets that are currently festering in illiquid markets that are ripe with middlemen who assume counterparty risk. With $256 trillion of real-world assets in the world, the opportunity for asset-backed tokens is truly massive, especially with regards to asset classes like real estate and fine art that have historically suffered from limited commerce and liquidity.
Asset-backed tokens also offer an alternative to traditional cryptocurrencies (e.g. stablecoins), as well as traditional crypto investing (e.g. crypto-trackers, coin traded indices). Various kind of asset-backed tokens have emerged these past months, and we aim to provide with a short overview of these.

Various kinds of asset-backed tokens

· Fiat Stablecoins: Tether (USD backed), EURS by Statis (EUR backed), TrueUSD (USD backed)
Fiat stablecoins are crypto-assets that maintain a stable value against a target price (e.g. USD). Different kind of stablecoins exist (e.g. asset-backed, algorithmic and hybrid). Stablecoins aim to solve the volatility challenge posed by cryptocurrencies. Volatility, among others, is one of the key factor preventing the widespread adoption of cryptocurrencies as a mean of payment. With cryptocurrencies subject to large fluctuations, business owners are less tempted to accept digital currencies. With stablecoins, whether backed by fiat or real world assets, blockchain entrepreneurs are facilitating the massive adoption of cryptocurrencies.
· Metal Stablecoins: Digix Gold Tokens (Gold backed), Goldmint (Gold backed), Tiberius (Backed by a basket of physically-deliverable metals)
Similar to fiat stablecoins, metal stablecoins maintain a stable value against a selected metal. For instance, in the case of gold, they are issued tokens representing a value of gold (for example 1 gram of gold equals 1 coin). The gram of gold is stored by a trusted custodian (preferably third party), and can be traded with other crypto holders. Gold has proved itself as a stable asset over the past decades, and gold stablecoins are one of the most interesting alternatives to fiat ones at the moment.
· Cryptos: C20 (Top 20 weighted market cap backed), TaaS (Tokenized Crypto Asset Management), BCAP (Tokenized VC Fund), Trakx Crypto Trackers
Asset-backed tokens allow for the creation of tokenized investment vehicles where the token represent shares into the fund. Several crypto funds with different strategies have appeared, with the specific goal to invest in assets related to the cryptocurrency and blockchain space. These companies may invest into Bitcoin, Ethereum, Ripple, Litecoin and other major cryptocurrencies directly. They may purchase altcoins at ICO or pre-ICO sales. Some funds invest in emerging blockchain startups, others still invest in companies that benefit from the boom in crypto. Some more, like Trakx, aim to offer simple and cheap crypto passive investment solutions.
· Real estate, art and other real-world assets: Property Coin (Real Estate backed), Maecenas (Tokenized Art Platform), KWHCoin (Clean energy backed)
Tokenization is also happening with real things like KWH of energy, art, real estate, and even identity. It brings tremendous efficiency by creating liquidity pools thereby eliminating liquidity premium and driving price discovery. Asset-backed token, when regulated, will bring a truly new opportunity to these very illiquid asset classes.
· Equity and Debt tokens: tZero (Preferred equity token), Kairos Class T (Equity asset-backed), Steem Dollars (Debt token)
Equity and debt tokens represent ownership in a real-world security, whether that is equity, debt. As a fundraising vehicle, security tokens allow companies to raise capital without having to lean on investment banks and stock exchanges as intermediaries. Given the oversight from regulatory bodies that security tokens are subject to, investors are able to invest in an opportunity without worrying about lack of transparency and potential scams.

Why good practices are important

Examples above also include some disputable asset-backed tokens. Some, although widely used (such as Tether), have come to a point where the community is heavily doubting their real backing. Our view is that good practices in this domain are important if we would like to see emerging a real asset-backed token market. At Trakx, our plan is to implement good practice in terms of transparency and management of our crypto-trackers:
• With reserves maintained in one-to-one ratio, Trakx.io crypto trackers should not face any market risk such as liquidity crunches and Black Swan events.
• One-to-one backing of offers the benefit of an easy understanding for non-technical users
• Trakx.io will offer a total transparency of its reserves. At any given time, the balance held in reserves will be equal to the number of crypto trackers in circulation, and easily verifiable. As the custodian of the backing asset, Trakx.io will act as a trusted third party responsible for that asset. The corresponding total amount of crypto held in reserves for crypto trackers will be proved by regularly publishing our balance and undergoing periodic audits by renown professionals (Big 4).
  • Market makers will be able to intervene and benefit from arbitrage opportunities, always guaranteeing that our crypto tracker trade at their net asset value.
Trakx is building a one-stop shop for Crypto Trackers. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.
submitted by Trakx_io to Trakx [link] [comments]

3 Stablecoins Enterprise Executives Need To Know And Why

3 Stablecoins Enterprise Executives Need To Know And Why

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The digital asset space is undergoing a transformation and is trying to adapt to new and wider interest from large non-financial companies like Facebook, Samsung, Walmart, BMW, Shell and Nestle. Those companies, along with large financial services institutional players like J.P. Morgan, UBS and Fidelity, create enormous demand for tradable assets running on both public and private blockchains. These non-financial companies are usually less risk-averse than are the experienced traditional finance institutions. Thus, to embrace the new technology, they must rely on stable, reliable and scalable instruments like stablecoins. These new assets are ideally suited to service the expanding payments industry, a primary blockchain use case, and digital assets exchanges.
Having price stability when trading and exchanging digital assets is important and effectively creates additional channels for global remittance as well as better price efficiency.
But what are stablecoins in a nutshell? They are digital assets designed to have a stable value and extremely low volatility. Usually, they are backed by fiat currency – in most cases, the US dollar, digital assets or a physical commodity like gold or silver. There are projects that aim to completely remove the need for physical collateral and that rely on algorithms to dynamically adjust supply. The goal is that the price should not drastically fluctuate at any moment in time.
Recently, several interesting stablecoin projects came out, and they are pushing the boundaries of digital assets. For example, the NYC-based exchange Gemini is issuing GUSD but also applying for an ATS (Alternative Trading System) license, which will create a unique opportunity for the GUSD to reach newly tokenized assets and private placements.
Another two projects coming from the corporate world are JPM Coin, run by the powerhouse J.P. Morgan, and Fnality’s Utility Settlement Coin, which is backed by a plethora of banks like UBS, BNY Melon, Barclays and HSBC. Both seem to have the same aims, a similar reach and the same potential customers. It will be interesting to see if they cooperate at some point.
  1. Tether
One of the most important benefits of stablecoins is that, if widely adopted by a large number of crypto exchanges, they create an opportunity for price hedging and risk management that is several times cheaper than hedging versus fiat. Currently, the most used in trading stablecoin is Tether. The USDT is pegged to the US dollar and widely used to create crypto markets on more than 25 of the most popular cryptocurrency exchanges. Founded in 2014 by the founders of the Bitfinex exchange, Tether is now the sixth most liquid crypto asset, with a market cap of $3.9 billion. The asset is available mostly on crypto exchanges that don’t have the New York-based BitLicense and reside mostly outside the US.

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Recently, Tether was in the news when the New York Attorney General started a case against Bitfinex and its Hong Kong founding company iFinex for using Tether reserves to mask a missing $850 million. Strangely, this high-profile investigation had minimal effect on Tether’s stability. It dropped to $0.85 but recovered to its usual dollar parity of $0.99 – $1.01.
Being vital to the crypto trading ecosystem, Tether aims to be as widely available as possible. It is available on numerous networks like OMNI (Bitcoin), ERC20 (Ethereum) and Tron. To get a sense of how fragile everything is, last week Poloniex wanted to move $50 million between networks. However, instead of printing the needed amount, it issued $5 billion in new tethers, which surprised the whole market. Eventually, it was made clear that this was an issue with the decimals, or what the trading world knows as “fat fingers”.

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Why it is important: Considered by many to be the main driver behind the bull run of Bitcoin’s price, Tether is vital for the crypto community because it is widely spread and adopted by exchanges. It makes up 75% of the total Bitcoin trading market, so it is also regarded as probably the biggest liability in the industry. Many experienced traders are wondering what would happen to the Bitcoin price and volatility if USDT availability is restricted. The interested parties will watch closely on July 29th, which marks the next appearance in the New York courtroom.
  1. Facebook Libra Coin
The stablecoin that has taken all the attention lately comes from Facebook and is a vital instrument in the Libra Association’s plan for its new global payment infrastructure. Facebook’s grand vision is to establish a global payment network among the 18 million merchants on its platform and among its 2.6 billion users. Interestingly, the first companies invited to the Libra Association formation all seem familiarly related; well, you don’t start something that big with complete strangers, do you? Maybe the overall goal is to replicate the WeChat/Tencent model in the western world but instead of using CNY, Libra plans to use a basket of low-volatility assets (bank deposits and government securities) denominated in multiple currencies like USD, GBP, EUR and JPY.
Last week, its co-creator, David Marcus, was in front of the Senate Banking Committee and the House Financial Services Committee, answering tough questions about regulation, trust and privacy. Generally, the Senate and Congress were supportive of the innovation and technology direction that will position the US as the leader in payments. However, they remain highly skeptical of the governance and execution of the Libra project in relation to handling data privacy. With fresh memories of 2008’s financial crisis, most members of Congress were asking themselves, “What will happen if Libra goes down and we have to bail it out?” Which leads to the question: How do you bail out the finances of 2.6 billion people?
Another concern is the fact that the governing body of the Libra Association is being established in Switzerland. This creates the possibility of regulatory arbitrage between US and Swiss laws. For example, securities lawyers in the US might consider the Libra token to be a security, which might not be the case for their Swiss colleagues. With all the signs of ETF (Exchange Traded Fund) or Money Market funds, this can’t be too far. The Libra stablecoin reserve will grow based primarily on two sources: the investors who will initially buy the Libra Investment Token ($LIT) and any other retail users who would convert any type of fiat to use the payment network.
In comparison to another stablecoin issued by a large corporation (J.P. Morgan’s coin), the Libra carries a different sentiment. When J.P. Morgan announced its JPMC, nobody reacted too harshly. Of course, J.P. Morgan doesn’t have the same privacy issues that Facebook does and is generally known to do well in exactly this: banking services with currencies.
An interesting use for the Libra network, once live, will be to serve as the Layer 2 network to permissionless protocols like Bitcoin and Ethereum. This way, the open and trustless networks can communicate/exchange value and assets with the Libra permissioned stablecoin.
Why it is important: Libra is moving waters in DC. This last week, the President tweeted, US Treasury Department Secretary Steven Mnuchin held a press conference and two days were spent in Washington with the Senate and Congress. One thing is clear: cryptocurrencies, Bitcoin and blockchain received prime-time attention. In terms of what comes out of Libra, only time will tell. The sentiment is that it will be heavily regulated, maybe closer to being a bank. Thus, the Libra token will look like CBDC (Central Bank Digital Currency).
  1. Dai
Building on the Ethereum protocol, the team at MakerDao created Dai to be a stable and decentralized currency fueling the new wave of DeFi (Decentralized Finance) applications. It uses an instrument known as Collateralized Debt Position (CDP), which allows you to lock your Ether assets into their smart contract and receive a loan denominated in Dai from the MakerDao system. In essence, the Dai is pegged to the US dollar but backed by Ether. Having Dai on the Ethereum protocols enables many financial services applications which otherwise wouldn’t exist due to the cryptocurrencies’ high volatility. Having Dai issuance and usage completely open is key to trustless financial services.
Currently, many discussions are taking place about the protocol stability fee. This is the interest rate, currently at 20.5%, that all users must pay back to the system when closing their CDP positions. One might argue that this is too high and the current CDPs are overcollateralized. It seems like this is true. The current collaterization ratio is around 390%. For $81 million in debt, there is $320 million in collateral.

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The Dai is an important instrument in the DeFi ecosystem built on Ethereum. Currently, it is being used on protocols like dYdX, enabling decentralized margin trading; 0x Protocol, the open-source marketplace for crypto tokens; Uniswap, the exchange for swapping ERC20 tokens; Dharma, the open protocol for building apps that allow for the borrowing and lending of digital assets; and many more.
There are three main issues of which Dai users must be aware:
Why it is important: Nevertheless, piece by piece, the Open Finance infrastructure, with stablecoins at its core, is being built and is “eating up financial services” as we know them. Slowly but surely, all the existing financial tools will have their own open sources and trustless tokenized equivalents.
A growing concern about stablecoins is how they could be classified by agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). For example, Basis’s stablecoin, despite raising $133 million, couldn’t escape the SEC classification as a security and had to shut down. Depending on how one reads the current regulation, one could classify the stablecoins as "swaps" under the CFTC regulation or as "demand notes" under the SEC. If you talk to experienced securities lawyers, the answer is always “it depends”.
Still, similar to other markets in which we saw interesting and innovative financial instruments, not all stablecoin projects will survive. The winner will be the one with the most user adoption, highest volumes, largest liquidity and lowest volatility. Last but not least, it should operate within an approved regulatory framework which will guarantee exchange listings and wider organic exposure.
It will be interesting to see if Facebook’s Libra receives regulatory approval, as this might pave the way for the long-awaited Bitcoin ETF.

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submitted by evseevam971 to u/evseevam971 [link] [comments]

BEAR market coming...

Hi guys,
The huge bull market we've seen in the recent months has let the market cap grow roughly ten times with some (roughly) 100 billion $ paper valuation created and enriching early entrants, traders and even anyone who bought more than 2 months ago.
For all who think they're geniuses because they're up 20% 50% or even 100% ONLY i've got bad news, bull markets in whatever asset don't last forever. You can't expect over 1000% quarterly (or monthly !) every quarter !! do you math its just impossible and its not gonna happen
The market is overbought by any metric. i'll take the simplest one, the monthly RSI. well I see it at 88 on BTCUSD, 97 (!!!) on ETHEUR, 80 on XRPBTC but if we made one for XRPUSD it zould probably be close to 97 as well...
Its been an incredible rally and actually i've missed myself all of the recent leg. of course i feel like a total idiot considering my last ETH around 90 EUR and most of it at even lower prices, still at the time RSI was ALREADY overbought, and i was up my initial stake x13. anyone picking up my ETH at 90 would have to wait 1300 EUR, another x4 to match such performance.
Guys you have to forget those 10% or 20% moves and look at the big picture. In ETH, there was a huge move up, and just MEAN REVERSION (i'm not even talking about trend change) would take us back to near double digits...current MA10 is 65 EUROS. I see a zone around 65-95 which looks as a natural target for mean reversion, and 25-40 looks like the big long term support zone from which the parabolic move began.
for BTC, mean reversion is somewhere around 800-1200 EUR for XRPBTC 4000 satoshis, i let you do the math using BTC target
Of course if such a move happens, there will be some abrupt moves down but also some powerful rallies in between (50% or more) and this scenario would take months to unfold.
After which, the new direction will be dictated by whatever new events happen (example. bullish a smaller country endorsing a cryptocurrency as its currency. bearish: govts forbidding crypto, finance industry implementing their own blockchains with instant cheap international settlements)
As for fundamentals i can see some good arguments to why crypto market cap should be worth (much?) more than 1 trillion but I see also some good ones why it should be worth only perhaps only 50% or 20% than now, and on top of that maybe with some currency which does not yet exist being most of it.
But whatever, what matters to me is the that the market is way overbought. Bitcoin experienced a similar powerful rallies in 2013 with highly overbought RSI the result was 259->63 a 75% drop and then 1163->152 an 87% drop...
Independently of crypto being revolutionary etc...and PERHAPS having the potential to be worth more in the future, i believe we can have losses of this magnitude and a bottoming process which last months if not years before the market changes direction again.
Shorter time frames (weekly, daily) show sign of divergence (RSI, volume) and some trendlines taken out. Don't forget in a bubble that the demand is highest at the peak of the bubble. Don't forget that for every buyer there has been one seller. there has been peak demand in the last month and the big whales have been cashing out.
No one is buying crypto to "use" it. everyone is buying it in hoping to sell it at a greater fool. but the chart is telling me we're running out of greater fools. Also who is REALLY making money in this market ? the small hodler who bought at 350$ a few thousands worth of ETH ? or those guys who have sold ICO TOKENS one shot for hundreds of millions of USD to the last bunch of amateur speculators ? My point is that those who are CURRENTLY making huge money in this market and the WINNERS are the guys selling now, and selling AS MUCH AS POSSIBLE (through ICO s !!!) and if you're not a winner, then .... you're probably the greater fool....
Bull markets are fun but if/when the momentum starts to turn and we have paper valuations decreasing by 1 billion every percent and we start to have double digit moves, the big holders are gonna rush for the exit... there is huge pending ICO related supply and lets not forget the mining supply as well.
We don't need any "news" to go down, an overbought bubbly market just collapses on its own weight and the more stretched it is the more violent is the snap back. When it happens, victims of the bear market will find excuses with "we could not have forecast this hack or this thing happening", the real story is that every bubble pops
by the way there will be no safe haven apart FIAT. if BTC, ETH XRP go down then it will drive the whole market down with it.
TLDR. i'm recommending to people to cash out as much as possible, and be in "trading mode". there is huge volatility and there will be a lot of opportunities.
Disclosure: very small long strategic position in crypto. focused on intraday opportunities and algorithmic trading and arbitrage. so far the market has been good to me since i cashed out, making money little by little, no big gains, but with almost no risk. i would start to go strategically ong again only if we get nearer to monthly moving averages. Before it happens, only trading positions with a short time frame. (and of course : NEVER SHORT CRYPTO !)
submitted by GrossBit to ethtrader [link] [comments]

Explaining why Ripple XRP has the most realistic potential in the CryptoVerse

"Ripple Consensus Ledger (RCL) basics
RCL is a “record book” that keep tabs on Trustlines and IOUs (and more).
IOUs
· Every account on RCL can issue an IOU.
· IOU = “I owe you” in short. A token representing an amount owed to someone.
· For example, I can issue USD.roborovskii or EUR.roborovskii or XAU.roborovskii, basically anything except XRP which is the reserved native token.
· If you have 10 USD.roborovskii in your RCL account. It would mean that I (roborovskii), owe you 10 USD as recorded on RCL.
· IOUs issued by another person are seen as USD.anotherperson, EUR.anotherperson, XAU.anotherperson, etc.
· Note that on RCL you may not see USD.anotherperson (the name), but the actual account’s public address (USD.rxxxxxxxxxxxxxxxxxxxxx).
· IOU tokens issued by different accounts (people or gateways) are treated as different tokens even if their symbols are the same. I.e. USD.roborovskii is different from USD.anotherperson
Trustlines
· A trustline is simply the amount in which you are willing to trust another party for.
· E.g. The amount in your bank account can be seen as IOU tokens, and what you have is basically a “trustline” of at least that amount extended to the bank. If you only dare trust your bank for a maximum of 10,000 USD. Then your trustline can be said to be 10,000 USD extended to your bank. And you would never hold more than that in your account.
· Trustlines on RCL - You make a deposit of 1000 USD to Bitstamp through a bank transfer. You NEED to set a trustline to Bitstamp on RCL for at least 1000 USD, or Bitstamp will not be able to credit 1000 USD.bitstamp (IOUs) to your RCL account.
· Once you do, Bitstamp would then be able to send 1000 USD.bitstamp to your RCL account.
· It is a common problem that new users forget (or do not know how) to set the trustlines. They transfer the money to the gateway, and wonder why they are not credited on RCL.
· E.g. If you do not set a trustline to me, I can never send you any IOUs. If you set a trustline to me for 100 USD, then I can only send you 100 USD.roborovskii maximum and not more than that. A network of trustlines bridged by orderbooks and market-making On RCL there are orderbooks where currency (or IOU) pairs are traded by market-makers and traders (examples):
USD.bitstamp : BTC.bitstamp
USD.gatehub : EUR.gatehub
USD.bitstamp : USD.gatehub
Remember that USD.bitstamp and USD.gatehub are treated as different tokens.
(Ideally, tokens with the same name would be valued at 1:1, but in reality, this isn’t so - due to the differentiated number of trust participants and valuation. E.g. 10,000 people trust and use USD.gatewayX, but only 100 people trust and use USD.gatewayZ. The USD token for gatewayX would naturally be valued more than gatewayZ due to more participation, thus more volume in orderbooks and more liquidity.)
The problem: If you had 1000 USD.bitstamp and you want to pay your friend 100 USD, you will NOT be able to send him the 100 USD.bitstamp if his RCL account does not have a trustline setup to Bitstamp. Perhaps he only has a trustline setup to Gatehub. In this case, he can ONLY receive USD.gatehub. This problem of sending IOUs to someone with different trustlines is where bridging comes into effect.
For the following example of bridging USD to USD, let's assume the exchange rate is an ideal 1:1
1) When you send your friend 100 USD.bitstamp on RCL, he would receive 100 USD.gatehub through the orderbooks that are filled by the market-makers and traders.
2) If you had a friend in Japan who only trusted JPY.MrRipple, sending him 10 USD.gatehub would bring out an option for him to receive 1137 JPY.MrRipple. This again is bridged by the orderbooks trading the pair USD.gatehub : JPY.MrRipple.
What is, and why XRP?
XRP is Ripple Consensus Ledger’s (RCL) native token. It is not issued by any account and was created together with RCL with a finite quantity of 100 billion; no more XRPs will ever be created again. The number of XRPs will decrease over time as it is consumed for every single transaction that is made. Being a counter-party free token, you do not need any trustlines to send or receive XRPs.
XRP is used when you:
1) Activate an account on RCL (open a wallet): 20 XRP reserved
2) Create a trustline: 5 XRP reserved
3) All transactions (buy/sell/bid/ask/send/cancel): Variable transaction cost The variable transaction cost increases as the load on the network increases. This acts as an antispam measure to prevent attacks on the network.
Towards a reserve currency
As the native currency on the network with no counter-party dependence, XRP would naturally be the bridge currency of choice between entities with no direct trustlines. With the ability to provide no more than 2 degrees of separation to both entities, costs can be reduced greatly by avoiding multiple hops across orderbooks. See https://ripple.com/xrp-portal/
Banks & Market-makers
It is a common misunderstanding that banks will (as a business entity) hold XRP. The main holders for XRP are market-makers (MM). Market-makers bridge currency pairs as well as XRP through arbitrage algorithms. To do that, they need to hold various currencies and XRP on the Ripple network (RCL). Profit in MM is greater with higher network utility, and will likely be very profitable given the volume of global remittance. While MMs themselves may be subsidiary of banks, it is more likely that they are managed like investment funds. Private investors will place money with these MMs (e.g. Japan-Asia MM Fund, India-Singapore MM Fund, Asia-Europe MM fund) for earnings. Therefore, the risk of holdings are placed onto investors in exchange for profit made from network utility through market-making. Addressing volatility: The percentage volatility is high today simply because the number of participants (holdings of XRP) is comparably low. This can, and will likely be addressed through higher participation and thus pricing. If you look at bitcoin today, the % change isn't as high as other alt coins that have lower participation. More participants, higher price, less volatility.
In essence, banks won't use XRP directly. MM+RCL = RC-Cloud. Ripple Connect links them to this cloud.
RC-Cloud : The combination of RCL + Market Makers as a black box solution. This is essentially what they have termed the "Ripple Solution". This is a solution to the fact that banks as a business entity do not want to hold large amounts of any digital currencies in their books. Using RC-Cloud the risk of digital currency holdings are placed onto market-makers who in turn profit from network utility. To the banks, whatever volatility happens in digital currencies are transparent to them (in the cloud), and they are only interested in the inputs and outputs (remittance utility).
Added this link in case anyone's wondering how profitable market-making is - https://ripple.com/insights/the-life-of-a-ripple-market-make
Note that in 2014-2015, RCL's volume is not nearly as high as it is today. With global remittance utility, you can only dream of how much profit MM funds will reap.
The Intrinsic Value of XRP
Market-makers require funds to fill the orderbooks. The more funds they have, the larger their “net” will be in capturing arbitrage opportunities.
With high global remittance utility, the need for liquidity/volume will also reflect that. This gives opportunities for market-makers to earn higher profits. The less market-makers there are, the bigger the cake they can each take. Naturally, more market-makers (or investors) will come on board to grab their share, bringing in more MM-funds and thus also raising the XRP price. This naturally increases liquidity/volume on the orderbooks to meet that need. The cycle essentially creates an organic balance in the system of utility, liquidity/volume and thus token pricing. While there will always be ebb and flows, the organic direction is towards balance.
The intrinsic value of XRP therefore depends on the utility of the network (at the moment targeting global remittance as the core) as well as its position as the ideal bridge currency on RCL." - roborovskii
Below is some more great information in video form... https://www.youtube.com/channel/UCWHF2ZrEGPeRhkSRub1O6PA?app=desktop
Every companys' success depends on the people they hire and Ripple are the most top notch in this aspect.. They're gathering highly qualified people with great minds. Hell they even got the guy who was once the Prime Minister of Defense and Minister of Economics & Technology in Germany. As well as Swift employees to understand Swift inside and out. The German brings an extensive network of global politicians, technologists and bankers to the table, he was even rumored to be a potential candidate to replace his former boss, German Chancellor Angela Merkel at one point. This company looks great from top to bottom. I wasn't the biggest fan before but after understanding it I feel I should share.
submitted by JoJoFool to Ripple [link] [comments]

A Super Simple Cryptocurrency Arbitrage Spreadsheet (with ETH examples) for Finding Mismatched Prices

Crazy stat of the day: You can trade cryptocurrencies on over 170+ different exchanges throughout the world.
Compare this to the stock markets in the United States which have a whopping…2. You know them very well by now (NYSE and Nasdaq), but these markets have had decades of consolidation and mergers.
While this is not an apples-to-apples comparison, cryptocurrency exchange consolidation is a natural market force that will happen eventually.
However, we do not know if this will take months, years…or even decades.
The abundance of choices in exchanges presents a multitude of problems, one of which is a large distribution of prices across all platforms.

Many Exchanges Breeds Many Problems

New markets such as cryptocurrencies all experience the following problems:
  1. Transactional inefficiency
  2. Differences in prices
  3. Illiquidity
  4. Changing spreads
These problems exist due to imbalances in supply and demand. If there is a lack of sellers or buyers, the problems mentioned above are enhanced.
Complicating the matter even further, each pricing discovery process is silo’d within each different exchange.
Smart arbitragers recognize this as an opportunity, and they specifically hone in on #2: Differences in prices.
When buyers are able to capitalize on differences in prices between markets, this is known as arbitrage.

The ELI5 Version of Crypto Arbitrage

ELI5 Version of Crypto Arbitrage
You have been following the price of a certain coin (we will just call it “coin” for this example) for a while.
One day while looking at prices, you noticed that on exchange #1 the price of “coin” was trading at $95. Simultaneously at exchange #2, “coin” was trading at $100.
Being that you are a smart cookie, you decided to do the following:
  1. Buy 1 coin @ $95 on exchange #1
  2. Sell 1 coin @ $100 on exchange #2
  3. Profit $5 from the difference in price
The crazy thing is, these market inefficiencies in this super new industry are available every day. Wouldn’t it be nice if we had a tool that could spot these price differences easily?

The Solution

Screenshot of the arbitrage spreadsheet
I created a spreadsheet that aggregates coin prices across multiple exchanges for all of the top cryptocurrencies. The spreadsheet uses the following services:
  1. Spreadstreet Google Sheets Add-in
  2. Cryptonator API
  3. Google Sheets

How to Use the Spreadsheet

Quick gif on how the tool works
First time install
The tool is nice and simple to use. It requires about 2 minutes to setup, then after that you are good to go.
  1. Make of copy of the worksheet: Click here
  2. Install the Spreadstreet Google Sheets Add-in
  3. Follow the instructions and log-in to the add-in
  4. Formulas in the sheet should update
Changing the primary currency
Cell B7 houses the primary currency (aka, the BTC in BTC/USD). Cryptonator has a massive list of currencies, but some of the more popular ones include BTC (Bitcoin), ETH (Ethereum) and LTC (Litecoin).
Changing the secondary currency
Cell C7 houses the secondary currency (aka, the USD in BTC/USD). Once again, Cryptonator has a massive list of secondary currencies, with the most popular being USD (United States Dollar) and EUR (Euro).

How to Read the Graph

The graph will list all the exchanges that Cryptonator currently has trade volume, based on the user’s pairing choice.
Spreadsheet graph
In this example, we are using the Ethereum vs. United States Dollar (ETH/USD) pairing.
Cryptonator currently tracks 10 different exchanges, all of which have their own price and volume statistics for ETH/USD.
Using this graph, a savvy investor (AKA you) could:
  1. Purchase ETH/USD at the Kraken exchange for $463.17
  2. Sell ETH/USD at the Cex.io exchange for $479.99
  3. For a potential profit of $16.82

The Pitfalls of Crypto Arbitrage

Of course you, being a savvy investor, know that nothing in life is this simple. This form of trading comes with it’s own pitfalls, and it would be irresponsible of me not to point them out.

Conclusion

Arbitrage is a classic technique in profiting off of assets, and cryptocurrency is no exception.
The large amount of exchanges present in the market creates unprecedented arbitrage opportunity, as each exchange carries it’s own pricing discovery mechanisms.
Take some time and download the cryptocurrency arbitrage tool I created, and see if you can uncover any inefficiencies currently in the market.
Cheers, and happy hunting
Original article found at: https://medium.com/@spreadstreet/a-super-simple-cryptocurrency-arbitrage-spreadsheet-for-finding-mismatched-prices-a6e8b12dd8b0

Download Now

Click here to download the spreadsheet

Resources

Download the add-in: https://spreadstreet.io/tools/google-sheets-add-in
Help: https://spreadstreet.io/docs
First time install and login: https://www.youtube.com/watch?v=aLjtPR4T2bg
Cryptonator Ticker endpoint help: https://spreadstreet.io/knowledge-base/cryptonator-api-complete-ticker-endpoint/

Related Posts

10 Statistical Price Predictions for 10 Cryptocurrencies
High-Flyers and Shitcoins: What I Learned from Analyzing CoinMarketCap Data in Google Sheets
7 Smart Ethereum Price Prediction Methods for HODL’ers
submitted by 1kexperimentdotcom to EthAnalysis [link] [comments]

Explaining Ripple XRP

"Ripple Consensus Ledger (RCL) basics
RCL is a “record book” that keep tabs on Trustlines and IOUs (and more).
IOUs
· Every account on RCL can issue an IOU.
· IOU = “I owe you” in short. A token representing an amount owed to someone.
· For example, I can issue USD.roborovskii or EUR.roborovskii or XAU.roborovskii, basically anything except XRP which is the reserved native token.
· If you have 10 USD.roborovskii in your RCL account. It would mean that I (roborovskii), owe you 10 USD as recorded on RCL.
· IOUs issued by another person are seen as USD.anotherperson, EUR.anotherperson, XAU.anotherperson, etc.
· Note that on RCL you may not see USD.anotherperson (the name), but the actual account’s public address (USD.rxxxxxxxxxxxxxxxxxxxxx).
· IOU tokens issued by different accounts (people or gateways) are treated as different tokens even if their symbols are the same. I.e. USD.roborovskii is different from USD.anotherperson
Trustlines
· A trustline is simply the amount in which you are willing to trust another party for.
· E.g. The amount in your bank account can be seen as IOU tokens, and what you have is basically a “trustline” of at least that amount extended to the bank. If you only dare trust your bank for a maximum of 10,000 USD. Then your trustline can be said to be 10,000 USD extended to your bank. And you would never hold more than that in your account.
· Trustlines on RCL - You make a deposit of 1000 USD to Bitstamp through a bank transfer. You NEED to set a trustline to Bitstamp on RCL for at least 1000 USD, or Bitstamp will not be able to credit 1000 USD.bitstamp (IOUs) to your RCL account.
· Once you do, Bitstamp would then be able to send 1000 USD.bitstamp to your RCL account.
· It is a common problem that new users forget (or do not know how) to set the trustlines. They transfer the money to the gateway, and wonder why they are not credited on RCL.
· E.g. If you do not set a trustline to me, I can never send you any IOUs. If you set a trustline to me for 100 USD, then I can only send you 100 USD.roborovskii maximum and not more than that. A network of trustlines bridged by orderbooks and market-making On RCL there are orderbooks where currency (or IOU) pairs are traded by market-makers and traders (examples):
USD.bitstamp : BTC.bitstamp
USD.gatehub : EUR.gatehub
USD.bitstamp : USD.gatehub
Remember that USD.bitstamp and USD.gatehub are treated as different tokens.
(Ideally, tokens with the same name would be valued at 1:1, but in reality, this isn’t so - due to the differentiated number of trust participants and valuation. E.g. 10,000 people trust and use USD.gatewayX, but only 100 people trust and use USD.gatewayZ. The USD token for gatewayX would naturally be valued more than gatewayZ due to more participation, thus more volume in orderbooks and more liquidity.)
The problem: If you had 1000 USD.bitstamp and you want to pay your friend 100 USD, you will NOT be able to send him the 100 USD.bitstamp if his RCL account does not have a trustline setup to Bitstamp. Perhaps he only has a trustline setup to Gatehub. In this case, he can ONLY receive USD.gatehub. This problem of sending IOUs to someone with different trustlines is where bridging comes into effect.
For the following example of bridging USD to USD, let's assume the exchange rate is an ideal 1:1
1) When you send your friend 100 USD.bitstamp on RCL, he would receive 100 USD.gatehub through the orderbooks that are filled by the market-makers and traders.
2) If you had a friend in Japan who only trusted JPY.MrRipple, sending him 10 USD.gatehub would bring out an option for him to receive 1137 JPY.MrRipple. This again is bridged by the orderbooks trading the pair USD.gatehub : JPY.MrRipple.
What is, and why XRP?
XRP is Ripple Consensus Ledger’s (RCL) native token. It is not issued by any account and was created together with RCL with a finite quantity of 100 billion; no more XRPs will ever be created again. The number of XRPs will decrease over time as it is consumed for every single transaction that is made. Being a counter-party free token, you do not need any trustlines to send or receive XRPs.
XRP is used when you:
1) Activate an account on RCL (open a wallet): 20 XRP reserved
2) Create a trustline: 5 XRP reserved
3) All transactions (buy/sell/bid/ask/send/cancel): Variable transaction cost The variable transaction cost increases as the load on the network increases. This acts as an antispam measure to prevent attacks on the network.
Towards a reserve currency
As the native currency on the network with no counter-party dependence, XRP would naturally be the bridge currency of choice between entities with no direct trustlines. With the ability to provide no more than 2 degrees of separation to both entities, costs can be reduced greatly by avoiding multiple hops across orderbooks. See https://ripple.com/xrp-portal/
Banks & Market-makers
It is a common misunderstanding that banks will (as a business entity) hold XRP. The main holders for XRP are market-makers (MM). Market-makers bridge currency pairs as well as XRP through arbitrage algorithms. To do that, they need to hold various currencies and XRP on the Ripple network (RCL). Profit in MM is greater with higher network utility, and will likely be very profitable given the volume of global remittance. While MMs themselves may be subsidiary of banks, it is more likely that they are managed like investment funds. Private investors will place money with these MMs (e.g. Japan-Asia MM Fund, India-Singapore MM Fund, Asia-Europe MM fund) for earnings. Therefore, the risk of holdings are placed onto investors in exchange for profit made from network utility through market-making. Addressing volatility: The percentage volatility is high today simply because the number of participants (holdings of XRP) is comparably low. This can, and will likely be addressed through higher participation and thus pricing. If you look at bitcoin today, the % change isn't as high as other alt coins that have lower participation. More participants, higher price, less volatility.
In essence, banks won't use XRP directly. MM+RCL = RC-Cloud. Ripple Connect links them to this cloud.
RC-Cloud : The combination of RCL + Market Makers as a black box solution. This is essentially what they have termed the "Ripple Solution". This is a solution to the fact that banks as a business entity do not want to hold large amounts of any digital currencies in their books. Using RC-Cloud the risk of digital currency holdings are placed onto market-makers who in turn profit from network utility. To the banks, whatever volatility happens in digital currencies are transparent to them (in the cloud), and they are only interested in the inputs and outputs (remittance utility).
Added this link in case anyone's wondering how profitable market-making is - https://ripple.com/insights/the-life-of-a-ripple-market-make
Note that in 2014-2015, RCL's volume is not nearly as high as it is today. With global remittance utility, you can only dream of how much profit MM funds will reap.
The Intrinsic Value of XRP
Market-makers require funds to fill the orderbooks. The more funds they have, the larger their “net” will be in capturing arbitrage opportunities.
With high global remittance utility, the need for liquidity/volume will also reflect that. This gives opportunities for market-makers to earn higher profits. The less market-makers there are, the bigger the cake they can each take. Naturally, more market-makers (or investors) will come on board to grab their share, bringing in more MM-funds and thus also raising the XRP price. This naturally increases liquidity/volume on the orderbooks to meet that need. The cycle essentially creates an organic balance in the system of utility, liquidity/volume and thus token pricing. While there will always be ebb and flows, the organic direction is towards balance.
The intrinsic value of XRP therefore depends on the utility of the network (at the moment targeting global remittance as the core) as well as its position as the ideal bridge currency on RCL." - roborovskii
Below is some more great information in video form... https://www.youtube.com/channel/UCWHF2ZrEGPeRhkSRub1O6PA?app=desktop
Every companys' success depends on the people they hire and Ripple are the most top notch in this aspect.. They're gathering highly qualified people with great minds. Hell they even got the guy who was once the Prime Minister of Defense and Minister of Economics & Technology in Germany. As well as Swift employees to understand Swift inside and out. The German brings an extensive network of global politicians, technologists and bankers to the table, he was even rumored to be a potential candidate to replace his former boss, German Chancellor Angela Merkel at one point. This company looks great from top to bottom. I wasn't the biggest fan before but after understanding it I feel I should share.
submitted by JoJoFool to CryptoCurrencies [link] [comments]

Explaining Ripple XRP

"Ripple Consensus Ledger (RCL) basics
RCL is a “record book” that keep tabs on Trustlines and IOUs (and more).
IOUs
· Every account on RCL can issue an IOU.
· IOU = “I owe you” in short. A token representing an amount owed to someone.
· For example, I can issue USD.roborovskii or EUR.roborovskii or XAU.roborovskii, basically anything except XRP which is the reserved native token.
· If you have 10 USD.roborovskii in your RCL account. It would mean that I (roborovskii), owe you 10 USD as recorded on RCL.
· IOUs issued by another person are seen as USD.anotherperson, EUR.anotherperson, XAU.anotherperson, etc.
· Note that on RCL you may not see USD.anotherperson (the name), but the actual account’s public address (USD.rxxxxxxxxxxxxxxxxxxxxx).
· IOU tokens issued by different accounts (people or gateways) are treated as different tokens even if their symbols are the same. I.e. USD.roborovskii is different from USD.anotherperson
Trustlines
· A trustline is simply the amount in which you are willing to trust another party for.
· E.g. The amount in your bank account can be seen as IOU tokens, and what you have is basically a “trustline” of at least that amount extended to the bank. If you only dare trust your bank for a maximum of 10,000 USD. Then your trustline can be said to be 10,000 USD extended to your bank. And you would never hold more than that in your account.
· Trustlines on RCL - You make a deposit of 1000 USD to Bitstamp through a bank transfer. You NEED to set a trustline to Bitstamp on RCL for at least 1000 USD, or Bitstamp will not be able to credit 1000 USD.bitstamp (IOUs) to your RCL account.
· Once you do, Bitstamp would then be able to send 1000 USD.bitstamp to your RCL account.
· It is a common problem that new users forget (or do not know how) to set the trustlines. They transfer the money to the gateway, and wonder why they are not credited on RCL.
· E.g. If you do not set a trustline to me, I can never send you any IOUs. If you set a trustline to me for 100 USD, then I can only send you 100 USD.roborovskii maximum and not more than that. A network of trustlines bridged by orderbooks and market-making On RCL there are orderbooks where currency (or IOU) pairs are traded by market-makers and traders (examples):
USD.bitstamp : BTC.bitstamp
USD.gatehub : EUR.gatehub
USD.bitstamp : USD.gatehub
Remember that USD.bitstamp and USD.gatehub are treated as different tokens.
(Ideally, tokens with the same name would be valued at 1:1, but in reality, this isn’t so - due to the differentiated number of trust participants and valuation. E.g. 10,000 people trust and use USD.gatewayX, but only 100 people trust and use USD.gatewayZ. The USD token for gatewayX would naturally be valued more than gatewayZ due to more participation, thus more volume in orderbooks and more liquidity.)
The problem: If you had 1000 USD.bitstamp and you want to pay your friend 100 USD, you will NOT be able to send him the 100 USD.bitstamp if his RCL account does not have a trustline setup to Bitstamp. Perhaps he only has a trustline setup to Gatehub. In this case, he can ONLY receive USD.gatehub. This problem of sending IOUs to someone with different trustlines is where bridging comes into effect.
For the following example of bridging USD to USD, let's assume the exchange rate is an ideal 1:1
1) When you send your friend 100 USD.bitstamp on RCL, he would receive 100 USD.gatehub through the orderbooks that are filled by the market-makers and traders.
2) If you had a friend in Japan who only trusted JPY.MrRipple, sending him 10 USD.gatehub would bring out an option for him to receive 1137 JPY.MrRipple. This again is bridged by the orderbooks trading the pair USD.gatehub : JPY.MrRipple.
What is, and why XRP?
XRP is Ripple Consensus Ledger’s (RCL) native token. It is not issued by any account and was created together with RCL with a finite quantity of 100 billion; no more XRPs will ever be created again. The number of XRPs will decrease over time as it is consumed for every single transaction that is made. Being a counter-party free token, you do not need any trustlines to send or receive XRPs.
XRP is used when you:
1) Activate an account on RCL (open a wallet): 20 XRP reserved
2) Create a trustline: 5 XRP reserved
3) All transactions (buy/sell/bid/ask/send/cancel): Variable transaction cost The variable transaction cost increases as the load on the network increases. This acts as an antispam measure to prevent attacks on the network.
Towards a reserve currency
As the native currency on the network with no counter-party dependence, XRP would naturally be the bridge currency of choice between entities with no direct trustlines. With the ability to provide no more than 2 degrees of separation to both entities, costs can be reduced greatly by avoiding multiple hops across orderbooks. See https://ripple.com/xrp-portal/
Banks & Market-makers
It is a common misunderstanding that banks will (as a business entity) hold XRP. The main holders for XRP are market-makers (MM). Market-makers bridge currency pairs as well as XRP through arbitrage algorithms. To do that, they need to hold various currencies and XRP on the Ripple network (RCL). Profit in MM is greater with higher network utility, and will likely be very profitable given the volume of global remittance. While MMs themselves may be subsidiary of banks, it is more likely that they are managed like investment funds. Private investors will place money with these MMs (e.g. Japan-Asia MM Fund, India-Singapore MM Fund, Asia-Europe MM fund) for earnings. Therefore, the risk of holdings are placed onto investors in exchange for profit made from network utility through market-making. Addressing volatility: The percentage volatility is high today simply because the number of participants (holdings of XRP) is comparably low. This can, and will likely be addressed through higher participation and thus pricing. If you look at bitcoin today, the % change isn't as high as other alt coins that have lower participation. More participants, higher price, less volatility.
In essence, banks won't use XRP directly. MM+RCL = RC-Cloud. Ripple Connect links them to this cloud.
RC-Cloud : The combination of RCL + Market Makers as a black box solution. This is essentially what they have termed the "Ripple Solution". This is a solution to the fact that banks as a business entity do not want to hold large amounts of any digital currencies in their books. Using RC-Cloud the risk of digital currency holdings are placed onto market-makers who in turn profit from network utility. To the banks, whatever volatility happens in digital currencies are transparent to them (in the cloud), and they are only interested in the inputs and outputs (remittance utility).
Added this link in case anyone's wondering how profitable market-making is - https://ripple.com/insights/the-life-of-a-ripple-market-make
Note that in 2014-2015, RCL's volume is not nearly as high as it is today. With global remittance utility, you can only dream of how much profit MM funds will reap.
The Intrinsic Value of XRP
Market-makers require funds to fill the orderbooks. The more funds they have, the larger their “net” will be in capturing arbitrage opportunities.
With high global remittance utility, the need for liquidity/volume will also reflect that. This gives opportunities for market-makers to earn higher profits. The less market-makers there are, the bigger the cake they can each take. Naturally, more market-makers (or investors) will come on board to grab their share, bringing in more MM-funds and thus also raising the XRP price. This naturally increases liquidity/volume on the orderbooks to meet that need. The cycle essentially creates an organic balance in the system of utility, liquidity/volume and thus token pricing. While there will always be ebb and flows, the organic direction is towards balance.
The intrinsic value of XRP therefore depends on the utility of the network (at the moment targeting global remittance as the core) as well as its position as the ideal bridge currency on RCL." - roborovskii
Below is some more great information in video form... https://www.youtube.com/channel/UCWHF2ZrEGPeRhkSRub1O6PA?app=desktop
submitted by JoJoFool to CryptoCurrency [link] [comments]

The Euro to Dollar Currency Swap

I think there is currency swap going on through bitcoin of exchanging euro for dollars based on expectations and signals that the USD is bottoming out and now rising against the Euro. Given the rise in Euro in recent months, there must be a lot of investors holding Euros that would like to convert them back into dollars. One way of multiple avenues is through buying bitcoins in euros. When rising demand picks up in Euro, and the Euro is weakening against the dollar, the BTC/EUR price will rise at a faster pace than BTC/USD. This creates short term arbitrage buying opportunities for buy BTC/USD and selling BTC/EUR which will be trading at a current value premium as its rising at a faster pace relative to the dollar. The result of this is likely a somewhat balanced order book with a little more weight on the buying side which can attribute to a slow increase in steady buying demand on both EUR and USD. One more reason to see the price of both BTC/EUR & BTC/USD rising in the coming days.
I also wrote a post about the reason for changing my of outlook from bearish to bullish short term: https://www.reddit.com/BitcoinMarkets/comments/72dbxy/the_case_for_5500_bitcoin_and_450_ehereum/
Also some interesting news from a Bloomberg article on recent Bitcoin/Copper correlation with 2 bitcoin expert interview videos. *Title Edit https://www.bloomberg.com/news/articles/2017-09-26/bitcoin-and-copper-in-lockstep-show-chinese-speculators-power
submitted by Bedroid to BitcoinMarkets [link] [comments]

A Super Simple Cryptocurrency Arbitrage Spreadsheet for Finding Mismatched Prices

Crazy stat of the day: You can trade cryptocurrencies on over 170+ different exchanges throughout the world.
Compare this to the stock markets in the United States which have a whopping…2. You know them very well by now (NYSE and Nasdaq), but these markets have had decades of consolidation and mergers.
While this is not an apples-to-apples comparison, cryptocurrency exchange consolidation is a natural market force that will happen eventually.
However, we do not know if this will take months, years…or even decades.
The abundance of choices in exchanges presents a multitude of problems, one of which is a large distribution of prices across all platforms.

Many Exchanges Breeds Many Problems

New markets such as cryptocurrencies all experience the following problems:
  1. Transactional inefficiency
  2. Differences in prices
  3. Illiquidity
  4. Changing spreads
These problems exist due to imbalances in supply and demand. If there is a lack of sellers or buyers, the problems mentioned above are enhanced.
Complicating the matter even further, each pricing discovery process is silo’d within each different exchange.
Smart arbitragers recognize this as an opportunity, and they specifically hone in on #2: Differences in prices.
When buyers are able to capitalize on differences in prices between markets, this is known as arbitrage.

The ELI5 Version of Crypto Arbitrage

ELI5 Version of Crypto Arbitrage
You have been following the price of a certain coin (we will just call it “coin” for this example) for a while.
One day while looking at prices, you noticed that on exchange #1 the price of “coin” was trading at $95. Simultaneously at exchange #2, “coin” was trading at $100.
Being that you are a smart cookie, you decided to do the following:
  1. Buy 1 coin @ $95 on exchange #1
  2. Sell 1 coin @ $100 on exchange #2
  3. Profit $5 from the difference in price
The crazy thing is, these market inefficiencies in this super new industry are available every day. Wouldn’t it be nice if we had a tool that could spot these price differences easily?

The Solution

Screenshot of the arbitrage spreadsheet
I created a spreadsheet that aggregates coin prices across multiple exchanges for all of the top cryptocurrencies. The spreadsheet uses the following services:
  1. Spreadstreet Google Sheets Add-in
  2. Cryptonator API
  3. Google Sheets

How to Use the Spreadsheet

Quick gif on how the tool works
First time install
The tool is nice and simple to use. It requires about 2 minutes to setup, then after that you are good to go.
  1. Make of copy of the worksheet: Click here
  2. Install the Spreadstreet Google Sheets Add-in
  3. Follow the instructions and log-in to the add-in
  4. Formulas in the sheet should update
Changing the primary currency
Cell B7 houses the primary currency (aka, the BTC in BTC/USD). Cryptonator has a massive list of currencies, but some of the more popular ones include BTC (Bitcoin), ETH (Ethereum) and LTC (Litecoin).
Changing the secondary currency
Cell C7 houses the secondary currency (aka, the USD in BTC/USD). Once again, Cryptonator has a massive list of secondary currencies, with the most popular being USD (United States Dollar) and EUR (Euro).

How to Read the Graph

The graph will list all the exchanges that Cryptonator currently has trade volume, based on the user’s pairing choice.
Spreadsheet graph
In this example, we are using the Ethereum vs. United States Dollar (ETH/USD) pairing.
Cryptonator currently tracks 10 different exchanges, all of which have their own price and volume statistics for ETH/USD.
Using this graph, a savvy investor (AKA you) could:
  1. Purchase ETH/USD at the Kraken exchange for $463.17
  2. Sell ETH/USD at the Cex.io exchange for $479.99
  3. For a potential profit of $16.82

The Pitfalls of Crypto Arbitrage

Of course you, being a savvy investor, know that nothing in life is this simple. This form of trading comes with it’s own pitfalls, and it would be irresponsible of me not to point them out.

Conclusion

Arbitrage is a classic technique in profiting off of assets, and cryptocurrency is no exception.
The large amount of exchanges present in the market creates unprecedented arbitrage opportunity, as each exchange carries it’s own pricing discovery mechanisms.
Take some time and download the cryptocurrency arbitrage tool I created, and see if you can uncover any inefficiencies currently in the market.
Cheers, and happy hunting
Original article found at: https://medium.com/@spreadstreet/a-super-simple-cryptocurrency-arbitrage-spreadsheet-for-finding-mismatched-prices-a6e8b12dd8b0

Download Now

Click here to download the spreadsheet

Resources

Download the add-in: https://spreadstreet.io/tools/google-sheets-add-in
Help: https://spreadstreet.io/docs
First time install and login: https://www.youtube.com/watch?v=aLjtPR4T2bg
Cryptonator Ticker endpoint help: https://spreadstreet.io/knowledge-base/cryptonator-api-complete-ticker-endpoint/

Related Posts

10 Statistical Price Predictions for 10 Cryptocurrencies
High-Flyers and Shitcoins: What I Learned from Analyzing CoinMarketCap Data in Google Sheets
7 Smart Ethereum Price Prediction Methods for HODL’ers
submitted by 1kexperimentdotcom to CryptoMarkets [link] [comments]

Can we expect spreads to lower over time?

One of the use cases of Bitcoin is to serve as an intermediate currency for international remittances. Say I have EUR and want them converted to USD. First I do a EUBTC trade, then a Bitcoin transaction, and then a BTC/USD trade.
Assume that both trades are done simultaneously, that there are no exchange fees and no mining fees, and that there is no three-point arbitrage opportunity if EUR and USD could be locally converted for free at mid-market rate.
Then the cost of this international remittance is essentially the spread. As far as I can tell, the fiat-bitcoin spread on the most liquid exchanges is quite volatile, but often is around 0.3%.
As an entrepreneur building a business that does international remittances with Bitcoin as an intermediate currency, I have three questions:
submitted by bobthesponge1 to BitcoinMarkets [link] [comments]

09-04 20:12 - 'arbitrage opportunity' (self.Bitcoin) by /u/Sebastiaan240 removed from /r/Bitcoin within 47-57min

'''
You can currently sell a lot of BTC for 3711 EUR or 4373 USD. If anyone's interested, please PM me so I can send a referral link, which is not allowed on this sub. You don't need to send me any BTC for this arbitrage, it's just between you and the exchange.
'''
arbitrage opportunity
Go1dfish undelete link
unreddit undelete link
Author: Sebastiaan240
submitted by removalbot to removalbot [link] [comments]

Something looks wrong here. Why is the mid price on BTC-e 17.5 USD lower than on Bitstamp?

The mid price of BTC-e and Bitstamp are 17.5 USD apart currently. This shouldn't happen.
Right now, someone can buy 168.00 BTC (for a total of 65,570.46 USD) on BTC-e, sell it Bitstamp, and earn a profit of 1,608.84 USD (2.4536% profit).
Why isn't anyone doing that?
This phenomenon isn't a short-lived arbitrage opportunity, it's been like this for at least since yesterday evening (GMT+2).
Does anyone know the reason for this?
EDIT: I should note: the problem is definitely with BTC-E, and not with Bitstamp. The other major exchanges (BTC China (CNY), Kraken (EUR), itBit, hitbtc, ANX) all agree with Bitstamp.
Judging from the symptom (lower market price on BTC-E), I would say either people are having trouble withdrawing bitcoins from BTC-E, or they don't expect to be able to in the near future.
submitted by runeks to Bitcoin [link] [comments]

A Question regarding Arbitrage (BTC-E -> Bitstamp)

For the past days I have been discussing arbitrage with my friends that are also into Bitcoin. Somehow it seems an opportunity too good to be true.
Albeith there are quite some fees added along the process, it seems like an easy way to make some extra money.
http://imgur.com/Sfuniys is an example i made starting off with 1500 EUR and doing the following steps:
1) Send 1500 EUR to BTC-E - Deposit Fee
2) Transfer 1485 EUR to USD
3) Transfer USD to BTC according to exchange rate - Fee.
4) Transfer BTC to Bitstamp.
5) Transfer Bitstamp BTC to USD
6) Payout - SEPA Fee + Exchange from USD -> EUR.
I still end up with a nice 2.74% profit margin within the space of 3 to 7 days depending on speed of SEPA transfers. Doing this on a weekly basis should net a nice extra in the end.
However I still feel i am missing out on something here. What is wrong with my calculations? I do understand that me doing this will move the market somewhat, but still not by enough to actually cut into my profits too much.
submitted by soepkip87 to Bitcoin [link] [comments]

Bitcoin- Arbitrage Software - YouTube How To Arbitrage Bitcoin for 20% - YouTube Bitcoin Arbitrage Opportunity?? Bitcoin and Cryptocurrency arbitrage - Simple - YouTube Huge Crypto Arbitrage Opportunities Happening (RIGHT NOW ...

However, these opportunities don’t really exist anymore: bitcoin’s volume is too high to provide major arbitrage opportunities like this. Instead, arbX mainly engages in triangular arbitrage, which is where you take advantage of the price of bitcoin in different markets – say, by buying bitcoin with the USD and then selling it with the South African Rand (ZAR). If Tether’s price goes above USD 1, let’s say to USD 1.01 on an exchange, traders would move USDT from an exchange where the price is still at USD 1, and sell as much Tether as possible until the price goes back to USD 1. Likewise, if Tether is at USD 0.99 on an exchange, traders will buy as much as possible until Tether’s price goes back to USD 1. This is called arbitrage, and it is ... bitcoin-arbitrage - opportunity detector and automated trading. It gets order books from supported exchanges and calculate arbitrage opportunities between each markets. It takes market depth into account. Currently supported exchanges to get data: Bitstamp (USD, EUR) Paymium (EUR) Bitfinex (USD, EUR) bitFlyer (USD, EUR) Kraken (USD, EUR) OkCoin ... Arbitrage Paths. Our algorithms analyze thousands of crypto pairs every minute to detect the best opportunities with a strongest uptrend potential. Currency Path Min Max Trade Duration Trade Return Monthly Return; Bitcoin : BTC / ARS / BRL / BTC Bitso / Forex / Nanu Exchange: 0.100000 BTC 0.800000 BTC: 19 DAYS +302.31% +474.21%: Bitcoin: BTC / ARS / JPY / BTC Bitso / Forex / CREX24: 0.250000 ... As bitcoin (BTC) experiences vertigo-inducing gains, cryptocurrencies are breaking out of a period where they followed or even lagged behind traditional markets. In fact, prices in the crypto market are seeing such a steep upward trend that arbitrage traders are able to trade between Bitfinex and other exchanges to easily capture profit.

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Bitcoin- Arbitrage Software - YouTube

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