Last update 08/08/18
An arbitrage allows earning a profit without any risk nor any initial investment.
Note that our definition of an arbitrage is broad: we do not require to place the different BUY and SELL orders at the exact same time on the different exchanges. Indeed, in practice this is only possible if you have the necessary currency amounts on both exchanges, which is impractical.
We prefer to consider any arbitrage on two exchanges and take into account the fees applied while transferring the amount resulting from the first order on the first exchange to the second one in the arbitrage computations.
However, the transfer of currencies between the exchanges can take time.
As a consequence, using our tool is not risk-free.
For example, there is a chance that you BUY an amount of currency and cannot SELL it at a higher price because prices have fallen during the transfer between exchanges.
Please note that we do not provide hedging recommendation with this tool.
Every arbitrage displayed on our platform is computed after taking into account all the implied fees (trading and transfer fees).
The amount you see on our platform are the exact numbers you need to enter on the exchanges to exploit an arbitrage.
In this section we describe the different steps that you need to take in order to leverage an arbitrage.
First of all, you need to have an account on all exchanges supported by our platform (see RTCA features).
Go to the home page of RTCA and choose the direction of your arbitrage.
If you want to increase your bag of cryptocurrencies, you need to look the SELL direction arbitrages. This way, you will find opportunities to SELL a currency on one exchange and BUY it back at a lower price on another one.
If you only want to generate profit, look for BUY arbitrages. This way, you will find opportunities to BUY a currency somewhere and SELL it back at a higher price somewhere else.
In this example, we consider a BUY arbitrage: we want to generate a profit and we do not have any other currencies than BTC and ETH.
After deactivating all the SELL arbitrages
rank the arbitrages by Return On Investment (ROI) to get the highest profit with the least amount of money invested.
On this example, there is an interesting arbitrage that allows us to generate a profit of 88.36 EUR by BUYING exactly 10.634 VERI on HITBTC and SELLING all of them on Mercatox.
The required amount of BTC to BUY the 10.634 VERI after transaction fees is equal to 581.77 EUR but we will be able to SELL those 10.634 VERI on Mercatox for exactly 670.13 EUR after fees.
In order to see the details of the arbitrage, you need to click on the line anywhere except on columns Quantity and Price, to allow you to copy and paste the arbitrage on the first exchange before moving to the details page.
Once you have clicked on the the line to access the arbitrage's details, our algorithm considers that you passed the first order on the first exchange. (here you BOUGHT 10.634 VERI on Mercatox).
The algorithm fixes the first part of the arbitrage and continuously updates the second part to let you know at which price you will sell the currency you bought.
On the top of the details page, an arbitrage with a red banners means that if you finalize the arbitrage you will lose money.
However, you can keep this page open as long as you want to track price variation and finalize the arbitrage only when the banner becomes green again (the arbitrage is updated in real time).
On the remaining of the same page, there is section named Details, which provides a step-by-step guide on how to execute the arbitrage. All data are actualized in real time.
You just have to follow what it is written to get the profit, as it is updated in real time!
That's it, you are now a real arbitrageur.
BUY: BUY a specific currency with BTC/ETH or any other allowed pair and SELL against the same currency on another exchange.
(e.g. BUY NANO with BTC on exchange A, transfer NANO from A to B, SELL NANO for BTC)
SELL: SELL your currency against BTC/ETH or any other allowed pair and BUY it back on another exchange
(e.g. SELL NANO against BTC on exchange A, transfer BTC from A to B, BUY NANO with BTC)
Some arbitrages are available on the SELL direction, but not on the BUY one because withdraw/deposit are unavailable (and/or withdraw fees are not the same on the different exchanges).
You can filter arbitrages by Return on Investment (ROI) or by total gains.
The Return of Investment is simply: ROI = (Gain - Costs) / Costs.
Conceptually, it gives you the best opportunity for the invested amount.
Initial: the initial amount of a given currency you need have on an exchange in order to start your BUY/SELL arbitrage.
Final: the final amount of a given currency you get after having executed the full BUY/SELL arbitrage.
We added a feature checking the deposits and withdrawals status of every currency on every exchange. If an arbitrage requires a disabled currency on one exchange, it will not be shown on our web platform to avoid making you lose time on it.
A yellow line means that the arbitrage is composed by at least one order book which has not received any update in the past 15 minutes. It can be caused by a low volume on the exchange but also by a problem while retrieving order books data from the exchange.
A closed pairs arbitrage is an arbitrage where only a difference of price for a specific pair pair of two currencies is considered, for example : BTC->NANO->BTC.
You can increase your amount of a given currency (here BTC) by BUYING/SELLING it with a closed pair arbitrages.
Opened pairs are another way of thinking the arbitrage.
Instead of looking at arbitrages with the same initial and final currency, the algorithm looks for more complex arbitrages.
To compute the arbitrage, the tool retrieves the USD/EUR exchange rate from GDAX to consider the flat value of each initial/final currency. A possible arbitrage might be BTC->NANO->ETH, where the final flat value of ETH is higher than the initial flat value of BTC.
With this feature enabled, for all arbitrage, the tool applies on the final amount the withdraw fees on the final exchange. This way, you easily consider the case where you do not want to keep the currency on the final exchange.