Frequently Asked Questions
A crypto triangular arbitrage bot is a tool that automatically executes trades between three cryptocurrency pairs to take advantage of price differences. It purchases a cryptocurrency on one exchange and sells it on another to profit from the price differences.
The bot analyzes the price discrepancies between three currencies across multiple exchanges. It then calculates the best route for trading to make a profit, without any manual intervention, by converting one cryptocurrency to another in a sequence.
Using a crypto triangular arbitrage bot can help you make profits without constant monitoring of the markets. The bot runs 24/7, taking advantage of price gaps that might last for only a few seconds.
While the bot can help secure profitable trades, it’s important to use a trusted bot and follow best practices for security. Always ensure that your API keys and account credentials are kept safe to avoid potential risks.
The main risks include sudden market shifts, technical issues with the bot, and the potential for losses due to high fees or slippage. Bots can also make mistakes in calculations if not properly configured.
