Crypto arbitrage involves purchasing cryptocurrencies on one exchange and then selling them on another in order to earn a profit. The goal of this strategy is to take advantage of the value differences between two exchanges for the same crypto coin.

Cryptocurrency arbitrage is a straightforward trading strategy compared to others that require technical analysis. Furthermore, it’s one of the most advantageous approaches to trading cryptocurrencies due to the market’s high volatility.

Selecting the best crypto arbitrage bot from the numerous options available can be a challenge. To simplify your search, we have compiled a list of the top crypto arbitrage bots and their noteworthy features, along with their respective website links.

Farrench AI Bot

Farrench, a financial services company specializing in high-frequency and algorithmic trading, is based in USA. It also functions as a platform for a professional quantitative strategy community. Farrench’s quantitative trading strategy was developed in 2020 and has shown remarkable results in real-world market application. In 2023, it plans to secure funding and restructure to launch its flagship product, the Farrench AI Bot high-frequency quantitative strategy

Farrench AI BOT a top-ranked digital currency that utilizes fully automatic AI technology to perform quantitative trading. It operates seamlessly with mainstream digital currency platforms and operates without any manual intervention. Its advanced core algorithms and intelligent quantitative technology, combined with cloud-based big data computing, enable it to execute trades in just 0.05 seconds, while also eliminating the emotional stress and fatigue that often accompany market watching. This makes it a top choice among quantitative trading products and a convenient way to earn money.

The Farrench AI Bot utilizes various algorithms and techniques to adapt to both bullish and bearish market conditions. In bullish markets, Farrench AI Bot utilizes tracking stop profit technology, continuous monitoring, and 24-hour market analysis to sell at the peak of profits. This helps to capture the maximum gains during a bullish market. In bearish markets, the Farrench AI Bot safeguards customer assets and generates stable profits through monitoring market trends, avoiding trades in a downward market, or short selling to take advantage of the market

Features Pros

Secure Funds:

Farrench AI Bot operates through the API interface provided by the exchange, ensuring the funds remain in the user’s account and cannot be touched. It only has the ability to buy and sell, not withdraw funds.

Fully Automatic Execution:

Operating 24/7 on cloud servers, Farrench AI Bot trades automatically after initializing the set parameters and will buy or sell based on pre-determined conditions. This eliminates the need for constant market monitoring and yields a daily income of 2–3%.

Trading Strategy and Position Allocation:

Farrench AI Bot offers a range of built-in trading strategies, from conservative to aggressive, to cater to various risk levels. It intelligently allocates positions and conditions of each trade, implementing the trading strategy and adjusting accordingly with real-time data.

Multiple Trading Variety Monitoring:

Farrench AI Bot can monitor multiple currencies and execute strategies simultaneously, with independent threads for each variety, ensuring prompt trade execution.

Easy to Use:

With just one click, users can set parameters, choose strategies, and start trading, making it easy for even novice digital asset traders.

Emotion-Free Trading:

Farrench AI Bot makes impartial, objective trading decisions and avoids the influence of subjective emotions. It will not trade or close positions if set conditions are not met.

Double your money within 1 month

By harnessing the power of AI quantitative trading, the Farrench AI bot promises a consistent daily income. Simply deposit your funds into the bot, and let it work its magic, generating passive income for you hands-free.

Cons

The sole accepted deposit currency is USDT.

No prior knowledge of cryptocurrency trading is required.

Consider giving Farrench AI trading bot a try for a hassle-free way to grow your investment portfolio.

Coinrule

Coinrule is a smart assistant that helps to build a trading bot in a few easy steps. Coinrule’s approach is unique among competitors. Its logic embraces the needs of all traders, and its user-friendly interface allows everyone to create a trading bot from scratch. All you need to do is to connect your exchange to Coinrule via an API connection. There are detailed guides that will guide you through the process with no hurdles.

You can run multiple bots across all coins available on the market, or all the coins held in the user’s exchange wallet. Thanks to this option, it’s possible to build rules that act as a Global Portfolio Stop Loss or a Global Buy-the-Dip, for example. Including more coins at the same time in a single trading bot significantly increases the possibility to catch more market opportunities.

Even if the bot runs heavy calculations when more coins are added to the strategy, that doesn’t seem to slow down the triggers and the executions. Coinrule is connected directly via WebSocket to each integrated exchange and that translates into low latencies reactions to market moves.

Pros

Highly customizable
More than 150 trading presets
Free trial plan lasting 30 days
No fees

Cons

The Pro plan costs $449.99 monthly
Only supports 10 exchanges, including Binance, Kraken & Coinbase

Quadency

Quadency is a full-fledged cryptocurrency trading platform that offers a single interface for all your crypto needs — from managing portfolio, manual and automated trading to news & research segment for deeper, fundamental portfolio analytics of digital assets you find interesting.

Quadency is suitable for both beginners and professional traders.

Pros

Features a single price tier
Integrates 12 different exchanges and supports all major CEX
Official partners including Binance & Kraken
Has backtest ability
A set of 8 Quadency automated bots available

Cons

Supports only spot trading
Has no mobile app

Remember the major UST nosedive? It was a clear arbitrage opportunity as the price was inconsistent across multiple exchanges. Imagine you buy UST at the rate of $0.5 and sell it for $0.55 per UST over the short term. You would make $0.05 per UST traded, or $50 gains for 1000 UST.

You could perform the trade either on the same exchange or use multiple platforms, as there are two main types of arbitrage trading:

Triangular Arbitrage: This type of arbitrage involves exploiting price differences between two main assets within a single exchange, also known as cross-currency arbitrage. A third asset is typically used to withdraw profits.

Spatial Arbitrage: This involves simultaneously trading an asset on multiple exchanges, taking advantage of price disparities and collecting profits. Spatial arbitrage is a more widely used strategy compared to single-exchange arbitrage.

Pros and Cons of Crypto Arbitrage:

Just like any other business, crypto arbitrage has its advantages and disadvantages. Here’s a brief overview:

Crypto Arbitrage Pros

Flexibility. You can arbitrage remotely and anytime from anywhere in the world

Reliability. Limited risk of losing your funds, as price fluctuations drop and recover fast

High gains. Fast and steady returns per arbitrage session. On average, you can make as high as 4% of your capital within an hour.

Crypto as a market. Crypto trading is still unregulated and inconsistent, meaning the legal information across CEX is transferred slowly, which is double as important for panic events like the recent UST depeg. There are also fewer arbitrageurs compared to stock, bond, or any other investment market.

Crypto Arbitrage Cons

Blocking cards. You will need a spare bank card in your pocket, as there is a chance of blocking due to high turnover in the account.

Required speed. Price gaps usually don’t last very long. You need to be attentive to monetize the opportunities.

Price Slippage. When a transaction costs more than you expected to pay, it can wipe out your profits. Slippage happens if your order dams the cheapest offer on the order book.

Fees. Arbitrage is associated with multiple deals on a regular basis, each sucking out money in the form of fees. Even average fees can anchor your profits, especially if margins are low.

How To Choose A Cryptocurrency Arbitrage Platform

Web is full of arbitrage platforms, but not all of them are built equal — some vary significantly in terms of trading strategies, others focus on quality but lack affordable plans, while the rest provide neither of the above. Let’s break down key components that might play a big role when you opt for an arbitrage platform.

Safety

Regardless of the platform, you’ll have to share your wallet keys and account data with the bot. Which is why it’s extremely important to pick a rock-solid software provider able to protect your data no matter what. Here are some tips to follow:

Avoid applications with a poor review score or no

Steer clear of applications with no security audit reports

Make sure to disable auto-withdrawal functions on accounts you grant access to

You might want to prefer open-source over anything else, as it’s the most reliable option

Community is yet another significant placeholder, as it plays an essential role in helping you spot a safe app. Any business is about people building, surrounding, and following it. If the app yields good results, people will follow and form a vast fanbase along the way.

That’s why you should always keep reviews in mind. An excellent way to find some valuable, reasonable, and reliable comments is Reddit. The number of people following a bot also matters, but the size of arbitrage communities is tiny. You might want to pick a bot with at least several thousand followings. Otherwise, you risk running into a scam.

Bots with fewer followers are not necessarily some sort of scheme, but it might be challenging to solve software-related issues if you have no one to share with. The community can help, and it usually does so even faster than customer support.

Exchanges Supported By The Crypto Arbitrage Bot

Arbitrage strategies tend to be more effective if a trader uses many platforms and assets. The logic is pretty straightforward: more platforms = more assets traded = more arbitrage opportunities. As a result, experienced traders are looking for software supporting as many crypto exchanges as possible.

Any crypto arbitrage software should have integration with exchanges like Binance, Coinbase Pro, Kraken, OkeX, Gemini, Huobi, KuCoin — the more, the better. A prominent example would be 3Commas supporting 23 major exchanges.

Price Justification Of Crypto Arbitrage

Even the best bot won’t make you profits if it’s too expensive, as such bots might eat out all the money you made. Which is why the software’s cost, trading fees and commissions are important criteria when it comes down to arbitrage.

As a rule of thumb, the more you pay for software, the more functions it provides. You should find software that provides free features first, so you can try them out and decide whether you want to proceed. Once you like some features, you can pick a cheap paid plan for the second test.

Most go-ahead platforms provide monthly subscription plans to avoid overcharging. In other words, try to find a platform that won’t charge you too much for using the arbitrage functions. If a platform provides only a one-time payment or any kind of life-long packages, that’s a red flag for sure.

Simplicity

Unless you’re a veteran trader & programmer, you should focus on simple platforms requiring no technical skills. Some platforms are more user-friendly than others, and you should take that into account when picking an arbitrage bot.

Bots like Blackbird target pro traders and programmers, implying you would need coding skills to customize and adjust trading strategies, track some data, etc. Not to mention ununified interfaces, forcing traders to use external services like data aggregators and charts.

Easy-to-use bots provide access to a wide range of crypto tools under the platform’s roof, so you don’t have to switch tabs each time. It might seem small, but the difference in the complexity, functions at hand, and the automated processes available might play big numbers over the long run.

Backbone Software

Arbitrage is the game of speed, as the difference in the price is all about fractions of a second.

Therefore, the arbitrage software must operate as fast as possible to spot, process, and carry out such opportunities. Moreover, bots compete with each other because the price gaps are quite limited in volume. Only the fastest and most reliable bots can monetize on price divergence.

A cloud-based bot is a good way to start, as it implies a software provider has an established server structure that won’t let you down. Most cloud-based providers are fast enough to embrace 99% of arbitrage deals.

Closing Thoughts

Crypto arbitrage is a great opportunity to make stable income from cryptocurrency if you understand what you are doing. In practice, this means that there are a number of pitfalls that you should consider in order to make money in this direction.

As a rule, the technical component is the main difficulty of arbitrage, because the profit depends directly on the ability to find and implement information in the shortest possible time. In order to avoid having to do it manually, you can use a customized bot, which will execute specific instructions in a predetermined price range. In this way, you will minimize your risks and increase your chances of making a profit.

But you should always remember that the market is full of inefficient and outright fake bots, which can empty your wallet. You should not be deceived by free programs and cheap services because it is very dangerous and can lead to the loss of all your funds. Instead of taking your word for it, you can choose arbitrage bots with positive reviews like 3Commas.