Regulatory Series on Cryptocurrencies: ‘Coinbase VP’ is now ‘CFTC’s Director of Market Oversight Division’
Stable-Coin Series: Make-it or Break-it Day For Facebook's Crypto Project as Libra Team To Meet BIS and FSB Members in Basel For Risk Assessment
FxWirePro: Snippets of SNB Policy and Drivers of Bullish Swiss Franc – Trade Butterfly Spreads and Hedge Via Debit Put Spreads
Digital Currency Revolution Series: London-based P2P Crypto-Solution, CMMPay Comes Up With ‘Your Keys, Your Crypto’ Concept
Digital Currency/Stablecoin/Tokenization Series: Facebook’s Crypto Project ‘Libra’ To Combat With Initial Setbacks
Cryptocurrency Derivatives Series: eToroX’s Lira To Support Crypto-Derivatives With Liquidity Providing
FxWirePro: How about deriving returns even in bearish cryptocurrency trend? A run through on triangular arbitrage opportunity
We have been noticing blood bath in the cryptocurrency space, as BTCUSD slides more than -18.19% this week, while ETHUSD tumbles about -27.43%, and so is the case with LTCUSD to show more than -25.77% dips.
Wouldn’t you astonished you can still make money even in such bearish streaks? Because, cryptocurrency space strikes a lot of attention for its unusual volatility and pricing differences in different exchanges, that also poses considerable risk for extensive returns.
On the risk perspective, arbitrage is the strategy that appears to be low-risk though.
While the triangular arbitrage has been quite unique than other trading techniques, unlike the direct arbitrage trading method, it explores three unalike exchanges.
Well, for instance, one buys coin A on Exchange X, sells the same in exchange Y for conversion to coin B, in turn, again sells that coin B on Exchange Z for even more handsome returns.
All these “phases” of the arbitrage process likely to fetch luring yields which essentially wouldn’t have to be distinctive in size.
As shown in the above diagram, let’s suppose that one can buy 1 LTC with BTC at Binance, which in turn, the same LTC can be utilized for buying 1 ETH at WEX. Thereby, one can derive considerable returns as you could easily make out that the price of LTC is dipping against bitcoin at Binance, but the same is gaining against ETH at WEX.
Currency Strength Index: FxWirePro's hourly BTC spot index has shown -102 (which is bearish), while hourly USD spot index was at -7 (neutral), while articulating at 10:54 GMT. For more details on the index, please refer below weblink: