The world of online trading is truly vast, and there is no shortage of opportunities to make money. Having so many possibilities, however, often leaves those approaching this world for the first time bewildered, not knowing how to start and which path to choose.
One of the main rules is the same as in other areas of investment: never invest without first studying the subject and building up a good background.
Investing without having knowledge of the sector is the mistake that is most often made.
After this first fundamental step, one must choose the type of investment.
Investing in cryptocurrencies using the arbitrage method is one of the safest systems.
What is cryptocurrency arbitrage?
Unlike the value of real currencies, cryptocurrencies do not have an official price set by a regulator; instead, their price can vary, albeit slightly, depending on the trading website.
A bit like in real life, where we might find the exact same product, of the same brand, in two different shops, with a price difference from one shop to the other.
Obviously, in everyday life, we cannot buy a shirt at a lower price from one shop and sell it in another store at a higher price, it cannot be done!
But in the world of cryptocurrencies, this is 100% legal and can be done freely, it is on this principle that arbitrage is based.
This type of transaction has to be as quick as possible as the price of virtual currencies changes rapidly, even in a matter of minutes: the risk we run is to buy a currency in order to be able to sell it at a higher price elsewhere but to see it devalued before we can complete the transaction.
Another problem is being able to control which exchange sites have the best prices; we should in fact buy where the price is lowest and resell where it is highest.
These two problems, speed of exchange and monitoring the various exchange sites, are amplified if we try to do everything manually: doing the transactions manually takes time while monitoring all the exchange sites at the same time is practically impossible.
In such cases, the best thing to do is rely on exchange software designed to facilitate arbitrage, such as the website Arbisgap. This software checks, in real time, dozens of different sites in order to indicate where it is most convenient to buy and sell at that precise moment.
Not only that, but buying and selling operations are also automated, saving precious minutes during transactions, and thus reducing risk!
Before concluding, two additional pieces of advice: the first is to keep abreast of news about cryptocurrencies, especially new currencies launched on the market, which usually have very high price differences between exchange sites, and therefore present a great opportunity for profit.
The second is to never invest more than you are willing to lose, as a minimum risk factor is always present, even in seemingly safer transactions!