Whether you are a new or professional trader, your goal is to get maximum profit when trading on crypto exchanges. There are many ways that you can do to achieve trading profit. One of them is by implementing an automated trading strategy.
On Tuesday, November 19, 2019, Rupiah Token collaborated with Tokocrypto and Hummingbot to hold a trader meetup event titled “Trading Level Up: Crypto High-Frequency Trading” at JS Luwansa, Jakarta. The meetup specifically discussed the strategy to get maximum profits on the crypto exchange by conducting arbitration with an automated trading bot, such as Hummingbot.
In general, arbitration is a strategy to buy assets from an exchange with lower price and sell them back at another exchange at a higher price to profit from the price difference. This method allows traders to exploit differences in the prices of identical or similar financial instruments in different markets.
“For example, if you have an opportunity to buy Ethereum (ETH) on Uniswap using Rupiah Token (IDRT) at a lower price, you can sell it back at the local crypto exchange at a higher price. The difference in price will be your profit. Imagine if you can do this automatically using bots to look at several opportunities in various exchanges,” said Fengkie Junis, Rupiah Token blockchain engineer.
Fengkie also stated other benefits that traders make when using IDRT on the crypto exchange.
“The use of USD stablecoin in Indonesia is not the best solution for traders because of the volatility between Rupiah and US Dollar. Traders who use IDRT will get more benefits because they do not need to convert values to other currencies, as IDRT is essentially the same as Indonesian Rupiah. This certainly makes it easier for traders to calculate the price difference,” he said.
Going forward, Fengkie hopes that every trader can arbitrate automatically to maximize the profits they have.