How to make money on cryptocurrency arbitration? | Litecoin Сlub

How to make money on cryptocurrency arbitration?

How to make money on cryptocurrency arbitration?

What do you know about cryptocurrency markets? Everyone knows that you can use market to buy / sell or trade cryptocurrency at a favorable rate. But the most important thing, that attracts - the opportunity to earn on market. All that is needed - to monitor and analyze the trend of the exchange rate.

You can buy cryptocurrency on the one market at the lower rate for the current moment, and sell on another smarket, where a higher rate, and get the profit of the difference (spread). Such speculative activities on the markets called an arbitration.

How to make money on the cryptocurrency market and is it everything so simple?

First of all, earnings on market attract traders because of the strong cryptocurrency volatility: the rate can up or down in a short period of time. So, the exchange rate movement can provide you with a profit or losses.

Let's descry the example of earning on the market via the Kraken and BTC'e. Let's suppose, at the moment on the Kraken market the value of one Litecoin is $ 3.15, and BTC'e - $ 3.25 (the real exchange rate should be carried out because it is constantly changing). You can buy Litecoins on the Kraken, sell on BTS'e, to bring profits in a convenient payment system via the exchanger. Of course, on the speculation with small amounts you won't win a lot, for more earnings recommended to carry out transactions at a higher amount. Also, you should pay attention to market fees: Kraken charges the fees for all operations, and the BTC-e withdrawal fee is 0.2%.

We've considered the standard example of earning on the cryptocurrency markets. Nevertheless, we should not forget about the risks associated with speculative operations. To protect yourself from financial losses, use special programs for arbitration, and also carry out the arbitration on the amount of Litecoins available on the market with a minimum volume - it will prevent you from buying extra amount cryptocurrency.

Always be careful making decisions in any transaction - it will give you the opportunity to increase your profits on a regular basis.