How to make profits with Cryptohopper arbitrage bot?

I had already spoken to you about best cryptocurrency trading bots. In this ranking, I put in first position Cryptohopp is , considering that it is one of the best - if not the best - trading robots on the market. This is still my opinion – and that of many people – to this day. 😎

That said, Cryptohopp is has released a new type of bot which, I think, will be of great interest to you. This is the arbitrage bot.

What is an arbitrage bot? In fact, it is a bot that allows you to buy cryptos cheaper on one platform and be able to resell them more expensively on another.

Arbitrage is a technique widely used by holders and partners of cryptocurrencies. 

Many of you asked me how I managed to generate profits thanks to automatic trading (and therefore via bots). I'm thinking of making a tutorial video soon but in the meantime, I think a tutorial article is just as good. Also, I am going to talk to you, here, specifically about the cryptohopper arbitrage bot.

So today we will see how to configure your arbitrage bot easily and step by step.

This way, you can start generating profits very quickly thanks to your arbitrage bot.

How to set up your CryptoHopper arbitrage bot

To fully understand arbitrage and to grasp what an arbitrage bot is capable of doing, it is necessary to first explain the small market flaws. These “flaws” are the price differences for a specific asset between different marketplaces.

➡️ Bringing it back to the cryptographic sphere, this can result in purchasing a cryptocurrency in an exchange like Binance for example and its sale at a higher price on the exchange Creak. Thus, we can then take advantage of the price differences between the different marketplaces.

Even though this is a widely used practice, be aware that it is not the only way for a trader to carry out significant arbitrage operations.

There is another way to implement this trading strategy, it is called triangular or intra-trade arbitrage. This practice consists of purchasing three different cryptos to take advantage of market flaws on the same exchange. If it's still unclear, no worries, we'll explain this phenomenon in more detail in the section below.

The different types of arbitrage bot

As explained in the previous paragraphs, there are two types of arbitrage trading strategies that a tarder can use: inter- and intra-trade arbitrage. Let's see what exactly it consists of:

👉 Intra exchange (or foreign exchange arbitrage).

Arbitrage between different exchanges is certainly the best known and most intuitive trading method. You should know that the displayed prices of cryptocurrencies are different from one exchange platform to another. It is this difference in price that traders exploit. This simply consists of buying a crypto cheaper on one platform x and reselling it more expensively on another platform.

Arbitrage between different exchanges is a trading method that has proven to be incredibly effective in the crypto market. That said, doing it manually can be time-consuming. This is why using a bot can be greatly useful. You can multiply your winnings automatically, without doing research and without having to stay behind your screen. Yes, yes, this is also why trading bots are all the rage. It's not surprising.

👉 The Inter-exchange arbitrage bot (or triangular arbitrage).

So far, we have seen how to take advantage of the fact that there are not the same prices displayed from one exchange to another. Now, we will see how we can do arbitrage on a single platform.

In fact, be aware that this is also a very common practice. This technique involves using a third crypto as a bridge between the two cryptos you want to buy/sell.

For example, your arbitrage bot finds an arbitrage opportunity between BTC and ADA, and it will have found it using a third crypto.

To take an example, let's say that we can sell BTC for ADA for a value of 0,015 BTC (fictitious value just for the example). We also see that we can also buy ADA against cheaper XRP, say at 0,012 BTC.

This therefore gives the following diagram:

1—->The bot will buy XRP with BTC

2—->Then, the bot will buy ADA with XRP

3—->Finally, the bot will resell ADA for BTC.

In the end, your bitcoin wallet will be bigger simply by this exchange. Imagine doing the operation dozens of times a day. Also consider that you trade relatively large sums: you generate even greater gains.

This is therefore a great opportunity for those who would like to make money with trading but who don't really know how to go about it. Or, it is also ideal for those looking to make profits without having to do complex trading with fundamental or technical analyses.

If this interests you, here are the steps explained one by one to configure your bot on CryptoHopper. 

How to configure your arbitrage bot in Cryptohopper step by step:

In this section you will learn how to get your arbitrage bot up and running in just a few minutes.

But before we begin, let me point out something that is essential to getting your arbitrage bot up and running. The bot will only place arbitrage orders if you already have funds in the exchanges you are going to use. If one of the exchanges does not have funds for both coins, the order might be canceled.

✅ In fact, you must first be registered on an exchange platform like Binance ou Creak (these are the platforms that I use personally). Additionally, you will also need to have funds.

Once you are registered, you can start configuring your bot.

• 1st step. Go to “View all your Hoppers”, and click on “Add a new Hopper”. There, you will see the page below. You will need to click on “Create Arbitrage Bot”.

• 2nd stage. In Basic Settings → Basic Settings, you can name the bot and set the maximum number of times to open buy and sell orders.

• 3rd step. There, in the Exchanges section, you select the exchanges in which the arbitrage bot will do its job. Activate and fill in the API keys for any exchange you want your bot to trade on (at least 2). You can also trade in “paper trading” mode to test the bot and its profitability. Paper trading is a good way to test the efficiency of your bot. It is virtual trading to put it simply.
• 4nd stage. Cryptos and amounts. In this section you can set the maximum amounts that the arbitrage bot will use for each crypto and the amount per transaction.

For example, if you set your BTC amount to 0,1, the bot will only trade 0,1 BTC of the total BTC in your wallet. Regarding the sale percentage, it is the percentage of the BTC amount that will be traded in each transaction. Suppose your BTC amount is 0,1 BTC and your sell percentage is set to 15%, this means the size of each arbitrage trade will be 0,1 * 0,15, resulting in 0,015 BTC by arbitrage operation.

This is a secure way to set limits on your bot.

• 5th step. Once the exchange is selected and saved, you need to select all the markets where your arbitrage bot can look for opportunities.
• 6nd stage. Swap arbitration settings. In this part you can: Select the minimum profit that your arbitrage bot will try to obtain in each transaction:

• Set the maximum opening time of an arbitrage order.
• Maximum Amount of Concurrent Arbitration Orders.
• Use the buy and sell rate to set the lowest ask, highest bid, and last values.

• 7th stage: Market arbitrage parameters. This section refers to intra-exchange or triangular arbitrage. Here you can configure the specific settings for this type of arbitration.

This bot can run alongside the FX arbitrage bot and will search for market arbitrage opportunities on your selected exchanges. It doesn't matter if you have selected two or nine exchanges, the arbitrage bot will work tirelessly to spot all market flaws to increase the value of your portfolio.

• Last step. Go back. This section gives the possibility to return / retry orders that have been canceled. If you want to retry failed commands and enable this option, those commands will be moved to the backlog for retrying later. On the other hand, if this function is disabled, failed commands will be completely canceled.

And There you go!!!!!!! That's all! Your arbitrage bot is functional!!

It can be a little difficult to understand all the different concepts at first, I agree. Myself, it took me a little time to become well acquainted with my bot. But it gets easy pretty quickly.

Conclusion on how to make profits with arbitrage bots

This little tutorial is coming to an end. I hope I have been clear enough for you to quickly benefit from these ways of trading.

I recommend you cryptohopper but know that you can also do it manually. That said, it will never be as effective as with a robot, let's be clear on that.

Also, Cryptohopp is works with a monthly subscription. You can use your trading bot from $19 per month. But, this is quickly repaid with a few good operations!

If you have any questions on this subject, do not hesitate to tell me in comments or by email!

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Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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