| Potential Triangular Arbitrage between USDC, BTC, ETH on Poloniex Exchange |  |
| Start | Buy | | Buy | | Buy | End | | |
BTC 100 | ETH 0.02251 4442 | | USDC 0.0005295 8389783 | | BTC 83893 100.01 | 0.01 0.01 |
BTC 100 | USDC 0.00001192 8390007 | | ETH 1889 4443 | | BTC 44.42 100.00 | 0.0 0.0 |
ETH 100 | USDC 0.0005295 188874 | | BTC 83893 2.251 | | ETH 0.02251 100.01 | 0.01 0.01 |
ETH 100 | BTC 44.42 2.251 | | USDC 0.00001192 188859 | | ETH 1889 100.00 | 0.0 0.0 |
USDC 100 | ETH 1889 0.05295 | | BTC 44.42 0.001192 | | USDC 0.00001192 100.00 | 0.0 0.0 |
USDC 100 | BTC 83893 0.001192 | | ETH 0.02251 0.05295 | | USDC 0.0005295 100.01 | 0.01 0.01 |
Above are the different combinations of the triangular flow of executions between USD Coin, Bitcoin, and Ethereum on Poloniex 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 Poloniex 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.
Poloniex is a pure crypto to crypto exchange based in the United States. With a grand redesign in early 2015, the site has added a wealth of features to provide a fully immersive trading experience. Technical analysis charts and live chat mean it is easy to stay abreast of news flow and analyze price trends before taking a position. For a crypto to crypto exchange, there is a good security and decent volume and order book depth for the majority of its trading pairs. Telegram | Weibo . Mediu. | 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.