Arbitrage in Cryptocurrency: A Survey

Abstract

Throughout numerous cryptocurrency exchanges, markets exhibit recurrent opportunities for arbitrage. There are various types of arbitrage strategies that can be carried out. Taking consideration of the pricing data from three famous exchanges (Binance, Kucoin and Coinbase) for bitcoin, the data analysis on spot prices for each timeframe helps in determining the buy market and sell market. Apart from the analysis, the profits generated by performing arbitrage using one of the discussed strategies are quantified. The implemented algorithm can be modified to suit the trading strategy. Finally, the future scope, as well as the issues and potential risks involved in these strategies, are discussed.