Welcome, to our article about the automated crypto arbitrage trading bots for Binance.
We will focus on crypto trading bots with an arbitrage function compatible with the Binance exchange.
We cover
- Best auto crypto arbitrage trading bots for Binance
- What is an auto crypto arbitrage strategy?
- Summary of each crypto trading bot
- Risks with auto crypto arbitrage trading
Related articles
Best Automated Crypto Arbitrage Trading Bots for Binance
In the table below, we have listed the best auto crypto arbitrage trading bots allowing arbitrage strategies that can yield a high ROI and are compatible with Binance.
- Company
- Price/Month
- Trustpilot
- Buy
What is auto arbitrage trading?
➤An arbitrage trade is a risk-free trade where you buy the asset on one market and simultaneously (or very close to simultaneously) sell it for a higher price in another market.
➤An auto crypto arbitrage strategy is a computer program that examines and compares coin prices across exchanges to make automated trades that take advantage of price discrepancies between exchanges.
➤An arbitrage strategy can work since crypto exchanges have isolated order books, and price differences will always occur.
Does arbitrage trading work?
Arbitrage occurs in markets all the time. However, markets tend to be efficient in finding risk-free opportunities.
Therefore, arbitrage opportunities often only exist for a very short time. There are probably even a lot of trading bots programmed just for this purpose.
Still, money is to be made, but you might need a substantial bankroll to make a living from arbitrage trading.
Can Binance take advantage of arbitrage opportunities?
In theory, Yes. We do not know if this is a part of their business strategy.
See the crypto arbitrage example illustrated in the picture below.
- Alice deposited $5.000 to Binance and bought 0.1 Bitcoin
- Alice transferred 0.1 BTC to Kraken and sold it for $5.010
- Now, Alice and move the $5.010 back to Binance and buy 0.1002 BTC
Cryptohopper Crypto Trading Bot – Arbitrage Strategy
Cryptohopper crypto trading bot lets you copy traders, manage all your exchange accounts in one place, use market-making and exchange/market arbitrage and simulate or back-test your trading strategies.
Cryptohopper has many pre-programmed crypto trading bot templates you can use, including arbitrage templates.
With Cryptohopper, you can exchange arbitrage between exchanges without sending funds from one business to another.
Connect your exchanges with funds via an API. Then, enable Exchange Arbitrage and let your Cryptohopper automated bot search for arbitrage opportunities.
In addition, you get fast, automated trading and portfolio management for Bitcoin, Ethereum, Litecoin, and 100+ other cryptocurrencies on the world’s top crypto exchanges.
Supported exchanges are Binance, Binance US, Kraken, Crypto_com, Kucoin, Bitfinex, Bitpanda pro, Coinbase pro, Bittrex, Poloniex, EXMO, Huobi, and OKEX.
Read more about the Cryptohopper arbitrage trading strategy.
Coinrule Crypto Trading Bot – Arbitrage strategy
Coinrule is a crypto trading bot and platform which empowers traders to compete with professional algorithmic traders and hedge funds. With Coinrule, no coding expertise is required, and there are already pre-programmed arbitrage templates.
Supported exchanges: Binance, Binance US, Poloniex, Bitpanda Pro, Coinbase Pro, Bitstamp, HitBTC, Kraken, Liquid, OKex
Read the full Coinrule review.
Bitsgap Crypto Trading Bot – Arbitrage strategy
Bitsgap is an all-in-one crypto trading platform for trading, trading bots, providing signals, and much more.
The sign-up process is a straightforward 2 minutes process with email verification. In addition, Bitsgap provides a 7-day free trial in which the trader can enjoy several features free of charge.
Read more about the Bitsgap crypto arbitrage bot for the highest ROI.
Supported exchanges: Coinbase Pro, Huobi, Kucoin, OKX, Bybit, Binance, Bittrex, Bitfinex, FTX, Kraken, Poloniex, Gemini, Gate.io, HitBTC, Liquid
Read more about Bitsgap in our Bitsgap trading bot review.
Pionex Crypto Trading Bot – Arbitrage strategy
Pionex is a cryptocurrency exchange with built-in free crypto trading bots.
Here, you will access 12 free pre-programmed unique crypto trading bots. These crypto trading bots allow you to automate your investing strategy.
Read more about the Pionex crypto trading arbitrage bot.
Risks with Automated Crypto Arbitrage Trading
➤As for any investment, crypto trading risks are associated with auto crypto arbitrage trading with bots.
However, if you are aware of and address the risks, it´s a much higher probability that you can manage and quantify them.
Here are some risks we have identified
- Execution risk – Arbitrage opportunities are short-lived, and you almost have to execute the trades simultaneously.
- Uptime – Since you interact with one seller and one buyer on two exchanges simultaneously, all things must be connected, and no downtime is allowed. In addition, you probably use crypto bot software to perform your arbitrage strategy.
- Counterparty risk – Since you have to deal with one buyer and seller simultaneously, there is always a counterparty risk.
- Liquidity risk – If you buy crypto on one exchange, the same position must be liquid to sell on the other exchange.
- Exchange fees – Arbitrage trading involves a lot of transactions with a small portion of the profit on each trade. As a result, there is a risk the costs will eat up all profit.
More Automated Trading Strategies with a bot
Many crypto trading strategies can be automated using a crypto trading bot software.
For example, we summarize the best-automated crypto day trading function for the most profit.
