Back

Crypto Arbitrage Bot ABC

Crypto arbitrage outdoes many trading strategies in how quickly profits accumulate, opening up a field of opportunities daily with over 500 exchanges that exist in the market. It’s a surprisingly viable method of trading, and to simplify it, there are plenty of handy tools to choose from. To maximize the chances of success in crypto arbitrage, automation may be the missing piece – with bots and software tools leading the arbitrage trading game. Why use a crypto arbitrage bot, and how does it work?

What is a Crypto Arbitrage Bot?

Crypto arbitrage bots are computer programs that do algorithmic trading, solving complex problems and rules. They create and submit buy and sell orders to exchanges based on the rules of a pre-defined trading strategy.

Data is the foundation of this type of trading. It frees traders from spending hours in front of the computer screen, losing time, patience, and, sometimes, money.

Crypto trading bots are not a magic pill, but a proper bot is fast, efficient, and running 24/7, which helps traders save time and maximize profits.

Why Use Bots?

While you have a life to live and need to sleep to function, crypto arbitrage bots are on guard round the clock. Although they do require supervision and occasional tweaking, bots perform trades without human intervention, which is perfect as some crypto arbitrage opportunities exist for only a very short period of time.

This is an excellent way to generate passive income 24/7. The profits remain on the smaller side, but, if obtained regularly, humble gains can accumulate decently over time.

Do I Really Need a Bot?

A bot is just a tool. Not using one doesn’t make the crypto arbitrage strategy any less viable than it already is – find out everything you need to know about arbitrage trading in A Guide to Crypto Arbitrage.

Using one, however, can make your arbitrage trading more consistent and efficient.

API for Arbitrage Data

Traders can access the APIs of crypto exchanges for data feeds of the crypto market that the exchanges support. Here’s why.

If you have a trading bot or wish to create your own, you can connect to an API to feed your bot with real-time crypto market data.

Using CoinMetro’s API

The CoinMetro platform offers both Web Socket and REST API connectivity.

If you are interested in using REST API and are looking for a basic guide on the open-source program used to load these environments, Postman is a good place to start.

However, if you prefer to subscribe to a WebSocket channel, WebSockets can be accessed via

  • wss://api.coinmetro.com/open/ws (Demo or paper trading version); or
  • wss://api.coinmetro.com/ws (Live or production)

The connection supports two arguments in the query string:

  • pairs: These are comma separated list of pairs for which book update subscription is requested;
  • token: A JWT token generated through one of the login paths. For long-lived tokens, use token={deviceId}:{token}

Both parameters are optional. Requests for account information, balances, wallets, or posting orders are only possible through the use of authenticated WebSockets or tokens (i.e., the connection string includes a valid token query parameter).

API limits for limited endpoints can be found in the documentation available on Postman.

The CoinMetro support team is available round the clock – if you have any questions or feedback, contact us.