| Potential Triangular Arbitrage between USDC, BTC, ETH on Bitstamp Exchange |  |
| Start | Buy | | Buy | | Buy | End | | |
BTC 100 | ETH 0.02251 4443 | | USDC 0.0005296 8389584 | | BTC 83893 100.00 | 0.0 0.0 |
BTC 100 | USDC 0.00001192 8389012 | | ETH 1888 4443 | | BTC 44.42 100.01 | 0.01 0.01 |
ETH 100 | USDC 0.0005296 188827 | | BTC 83893 2.251 | | ETH 0.02251 100.00 | 0.0 0.0 |
ETH 100 | BTC 44.42 2.251 | | USDC 0.00001192 188837 | | ETH 1888 100.01 | 0.01 0.01 |
USDC 100 | ETH 1888 0.05296 | | BTC 44.42 0.001192 | | USDC 0.00001192 100.01 | 0.01 0.01 |
USDC 100 | BTC 83893 0.001192 | | ETH 0.02251 0.05296 | | USDC 0.0005296 100.00 | 0.0 0.0 |
Above are the different combinations of the triangular flow of executions between USD Coin, Bitcoin, and Ethereum on Bitstamp 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 Bitstamp 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.
Ever since it opened its doors in 2011, Bitstamp has provided a reliable gateway into the crypto universe for individuals and institutions worldwide. It is Europ. s biggest exchange by trading volume and offers trading of BTC, ETH, LTC, BCH and XRP paired with USD, EUR, and BTC. Beginners can purchase crypto with credit cards, while experienced traders can use a range of order types and analytical tools. The exchange is a pioneer in crypto security and regulation, having developed a number of best practices for the industry, like cold storage of assets, multisig wallets and segwit implementation. With a mature approach to the industry, Bitstamp serves as the bridge between traditional finance and crypto. Telegram | Instagram . LinkedIn | Facebook
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.