Crypto Arbitrage Master
A sophisticated bot designed to exploit price differences in cryptocurrency exchanges across different countries, such as Korea and Indonesia, to generate profit through arbitrage.
Features
- Automated price monitoring across multiple cryptocurrency exchanges
- Real-time detection of arbitrage opportunities between different markets
- Automatic execution of trades to capitalize on price differentials
- Currency conversion handling for cross-border arbitrage
Technical Stack
- JavaScript/Node.js
- Exchange APIs (Binance, Upbit, Indodax, etc.)
- CCXT CryptoCurrency eXchange Trading Library
- WebSockets for real-time price updates
- Database for tracking transactions and profitability
Lessons Learned
The cryptocurrency arbitrage bot project taught me several valuable lessons about both market dynamics and automation. While the bot was initially profitable by exploiting price differences between exchanges in different countries, I discovered that these opportunities were gradually diminishing as markets became more efficient and interconnected.
A significant challenge was dealing with the high fees associated with moving funds between exchanges, which ate into profit margins. Additionally, the time required for confirmations on blockchain networks sometimes meant arbitrage opportunities disappeared before trades could be executed.
This project highlighted the importance of considering all costs in a trading strategy and the need for continuous adaptation as market conditions evolve. It also demonstrated that short-term profitability doesn't always translate to long-term sustainability in algorithmic trading.