Day trading any financial instrument could be tough. An investor’s major objective is to constantly look for ways to seize market opportunities through arbitrage. A savvy investor aims for low-hanging fruits that would add up to his profit bottom line in the long run.
The arbitraging strategy also applies to day-trading crypto, especially with the high volatility Bitcoin and other altcoins witness. Traders constantly have to watch the charts for opportunities. Overall, this can be stressful.
The use of technology has helped investors accurately forecast and make near-accurate predictions of the market. With the aid of scanners and other robots giving off signals, investors can make better entry and exit price decisions which overall improves their trades.
In this article, I will show you the 7 best crypto arbitrage scanners for day trading cryptocurrencies.
Key Takeaways
• TradingView comes with a mobile app so that you can easily access and monitor your crypto trades anywhere, anytime.
• With CryptoView, you can trade on more than one crypto exchange, as this crypto scanner allows users to do just that.
• Crypto arbitrage scanners essentially help you track your crypto assets by providing vital and up-to-date information on them.
• There are tons of crypto arbitrage scanners in the crypto market with varying features tailored to the investor’s trading needs.
SEE ALSO: How To Use TradingView Social Networking Tool
SEE ALSO: How To Arbitrage Between Crypto Exchanges For Gains
What is Crypto Arbitrage?
Crypto arbitrage is simply a transaction process that involves buying crypto at a given rate on an exchange and selling it at a higher rate on another exchange while making a profit from the price difference.
For example, if Coinbase sells 2 Ethers for $5,000 and Binance sells the same 2 Ethers for $4500, you could simply purchase two or more Ethers from Binance and sell them at a higher rate of $5000 on Coinbase. That way, you make a profit of $500, excluding commissions and other fees.
The major thing you need to be aware of here is time. Cryptocurrency prices are always changing, and if you intend on making profits from this, you will need to be as proactive as possible, making quick decisions where necessary.
There is also another form of arbitrage, referred to as “intra arbitrage,” where investors exploit market inefficiencies to make a profit.
In this form of arbitrage, all you need to do is to buy a crypto asset, transfer it to another crypto asset, and then transfer it back to the first asset to make a small profit. This form of arbitrage is way more complex than the first.
What is a Crypto Arbitrage Scanner?
A crypto arbitrage scanner is a tool used to monitor and track the activities of different crypto assets, which traders and investors can use to predict what trade orders to carry out, reducing their chances of failure as a result.
Moving on, let me introduce to you seven of the best crypto arbitrage scanners for day trading. Here they are below:
1. TradingView
TradingView is one of the best and most popular crypto arbitrage scanners on the planet. The platform comes with a lot of features, such as a mobile app, screening capabilities, and much more.
There are also educational resources on the platform that can help you learn about crypto arbitrage, converse with professional traders, and even analyze real-time data.
You also get to receive a paper trading account to get used to using the Trading View set of tools.
Features
1.It covers a lot of data across the globe.
2. It has, in its name, highly flexible screeners.
3. It does a backtest for trading strategies.
4. It has over 10,000 technical indicators.
5. It has 12 customizable chart types.
6. It has 50+ smart drawing tools.
2. Cryptolume
Cryptolume was designed to think as a trader plugged into the Matrix. They connect out to all the major exchanges and compute complex algorithms to provide you with easier-to-use market information and alerts than any other cryptocurrency tool that’s available today.
Their crypto alerts and robust crypto scanner also show you fast and efficient information about cryptocurrency markets.
Features
1. It provides a crypto scanner/screener.
2. It provides trading indicator alerts.
3. It provides an exchange volume analyzer.
4. It provides a table of movements.
5. It provides crypto sentiment analysis.
6. It has a crypto event calendar.
3. CryptoAlerts
CryptoAlerts is among the best crypto scanners on the market. It allows you to scan over 50 crypto exchanges for trading opportunities, and you can also filter by price action, performance, technical indicators, candle patterns, and schedule alerts.
This crypto scanner also shows you the biggest gainers and losers on its website as well as other items such as new highs, new lows, etc.
You can also create your own custom scanner by clicking on the “Create Scan” button at the bottom of your screen.
Features
1. It allows you to engage in Spot trading.
2. It can scan over 50 crypto exchanges.
3. It provides heatmaps on the platform.
4. Altrady
With the Altrady crypto trading software, you can boost your trading and trade on multiple exchanges, track your performance, improve, and get less emotional.
This crypto scanner software is suitable for investors who want to diversify their trading portfolios. This is because the software provides some of the best features that can be used to achieve this and create a unique trading experience for investors.
Features
1. It provides the option of smart trading.
2. You can track the progress and performance of each position across all accounts.
3. It is a single platform to trade on multiple exchanges.
4. You can stay up to date with the market with the platform’s real-time market data.
5. CryptoView
CryptoView is a crypto scanner platform where you can compare various performance indicators for over 10,000 markets across all supported exchanges and quickly find trading opportunities.
The platform also supports 17 crypto exchanges, which include the likes of Coinbase, Coinbase Pro, Binance, Kraken, OKEX, etc.
Features
1. It has multi-exchange trading.
2. It has a portfolio tracking feature.
3. It has a multi-chart interface.
4. It has a smart trading panel.
5. It has a multi-portfolio manager.
6. Crypto Base Scanner
The Crypto Base Scanner, just as its name implies, is a crypto arbitrage scanner that automates your trading with thousands of signals every month and an over 98% success rate.
The platform offers a unique algorithm that works by automatically analyzing the market history for each available market, checking current prices against the basis, and notifying you at your preferred notification level.
It also supports 9 cryptocurrency exchanges, including Binance, KuCoin, and OKEX, to mention a few.
Features
1. It manages investors’ portfolios.
2. It also has vault protection.
7. Yahoo! Finance
Yahoo! Finance is a crypto arbitrage scanner that provides you with free stock quotes, up-to-date news, portfolio management resources, international market data, and much more.
Features
1. It has historical financials and statistics with CSV reports.
2. It has an enhanced chart with auto pattern recognition.
3. It has desktop live chat support.
4. It has monthly educational webinars with Q&A.
5. It has a market digest newsletter.
Frequently Asked Questions (FAQs)
Is arbitrage trading illegal?
Arbitrage trading is not illegal; in fact, it is even encouraged as it helps to promote market efficiency. Furthermore, arbitrageurs also serve a useful purpose by acting as intermediaries, providing liquidity in different markets.
Which cryptocurrency exchanges are best for arbitrage?
There are several crypto exchanges in the crypto market that provide excellent arbitrage services. A few of them include Bittrex, Coinbase Pro, Cex.io, etc.
Final Thoughts
Crypto arbitrage is one way you can make a profit by exploiting the market’s inefficiency to your advantage.
In addition to this, I have listed out seven crypto arbitrage scanners with their capabilities as they should be of help to you while you engage in crypto arbitrage day trading.
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