| Potential Triangular Arbitrage between USDT, BTC, ETH on Bitso Exchange |  |
| Start | Buy | | Buy | | Buy | End | | |
BTC 100 | ETH 0.03801 2631 | | USDT 0.0002740 9603913 | | BTC 96061 99.98 | -0.02 -0.02 |
BTC 100 | USDT 0.00001041 9604075 | | ETH 3650 2632 | | BTC 26.31 100.02 | 0.02 0.02 |
ETH 100 | USDT 0.0002740 365029 | | BTC 96061 3.800 | | ETH 0.03801 99.98 | -0.02 -0.02 |
ETH 100 | BTC 26.31 3.801 | | USDT 0.00001041 365051 | | ETH 3650 100.02 | 0.02 0.02 |
USDT 100 | ETH 3650 0.02740 | | BTC 26.31 0.001041 | | USDT 0.00001041 100.02 | 0.02 0.02 |
USDT 100 | BTC 96061 0.001041 | | ETH 0.03801 0.02739 | | USDT 0.0002740 99.98 | -0.02 -0.02 |
Above are the different combinations of the triangular flow of executions between Tether, Bitcoin, and Ethereum on Bitso exchange. A triangular arbitrage with cryptocurrencies occurs when a given coin's exchange rate does not match the cross-exchange rate of that coin to another counter currency. The price discrepancies generally arise from situations when one coin is overvalued while another is undervalued. Please note, we use the market (spot) prices between cryptocurrency pairs. You should use real-time bid and ask prices obtained directly from the Bitso marketplace in a real situation.
Triangular intra-exchange arbitrage could be appealing because it happens entirely on a single exchange,
unlike other arbitrage strategies that involve trading across multiple exchanges. To find profitable opportunities
among the given 3-coin combinations below, we can determine if a cross-rate is overvalued.
If there is a price discrepancy when trading between selected assets, we can generate risk-free profit
if the orders are performed correctly, respecting all transaction fees.
Bits. is a Mexican cryptocurrency exchange founded in 2014. It allows users to exchange Bitcoin and Ether for Mexican Pesos. Users can deposit and withdraw MXN through the Ripple Gateway among others. Bits. i. committed to developing efficient financial services in Mexico. Bitso is a Digital Exchange platform that ensures security and allows its users to buy and sell Digital Assets amonst them. Users place Buy and Sell orders in the Bitso Market and trade with other users also wishing to Sell/Buy. Bitso has no control over prices of Digital Assets, prices are determined by supply and demand. Telegram . Facebook | Instagram . YouTub. | Reddit
Triangular arbitrage of digital assets is a trading technique that tries to profit from a price difference between three
different coins on the same cryptocurrency exchange or across different markets.
Sophisticated traders did triangular arbitrage for many years in the forex markets, and it can also
be applied to cryptocurrency markets.
Cryptocurrency arbitrage is the process of taking advantage of inefficiencies in markets. With cryptocurrencies, this can happens more
often as the price of coins fluctuates over time and differs on different exchanges against the homogenous counter currency.
If there is a difference between the cost of an asset across other exchanges (or even potentially within the same market),
it may be possible to buy and sell the same coin in a way that will result in a net profit. A triangular arbitrage opportunity is a
trading strategy that exploits the arbitrage opportunities that exist among three currencies on a single exchange or across multiple exchanges.
The triangular arbitrage is found during the exchange of one coin to another when there are discrepancies in the listed prices for the given
counter currency.