Arbitrage? What's that? Why use it?

Arbitrage is a trading technique that few people have ever heard about. The beauty of this trading transaction is you are buying and selling an asset, but using the price difference between two different exchanges to profit. In another words, one exchange is selling an asset higher than another. With arbitrage, you already know the price difference (which is your profit), so you buy on one exchange and sell on the other. No guesswork or speculation, nearly eliminating all risk! 

To understand the power of arbitrage trading, here's a little model or example:


Arbitrage. What is it?
(noun) the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.

In the case of cryptocurrencies and Cyptosuite, it's actually a no-brainer. You can see both the buy and sell prices, and KNOW before you start the transaction exactly what you'll earn. And, because the buy/sell of arbitrage is nearly instantaneous, your profits are immediate. With the impending bull market about to run in the cryptocurrencies, there will be a lot of arbitrage opportunities, nearly hourly! Hundreds of cryptocurrencies will offer thousands of arbitrage opportunities at any given moment. 

By knowing what the buy/sell prices are and the immediate execution of the transaction, with NO speculative involvement, compounding your earnings is a given. So, let's look at what a modest net 5%** arbitrage profit looks like, compounding each transaction. ( For this example, we'll assume 5 transactions per hour. )
Starting with $200 -
Transaction:
1) $210
2) $220.50
3) $231.25
4) $243.10
5) $255.25      After an hour, the estimated yield is 21.5%

Assuming you are only arbitrage trading 3 hours per day (part-time), that's roughly $376.65 the FIRST day. But, what if you spent only three days per week using arbitrage trading? Second day could be about $675.56, and the third day $1,211.70. That's what 3 hours per day for 3 days would look like. That's the power of compounding, and that compounding is made much easier by using CryptoSuite. That's why we think this software is a very power tool to own and use!! No speculation or guesswork!

Continuing to compound your earnings through week 2: ~ $6,129,38
Continuing to compound your earnings through week 3: ~$31,005.45
Continuing to compound your earnings through week 4: ~$156,841.27*
FOUR WEEKS IS ONE MONTH!

Understand, this is ONLY a mathematical model of what compounding can do for your portfolio. This is HOW Hedge Funds earn so much money, most have mastered the ability to use arbitrage with virtually ANY asset class. And now, with CryptoSuite, you have that same ability at your fingertips.


*Note: This is NOT an earnings projection, this is simply a mathematical model of what compounding looks like when applied to arbitrage trading. The reason to show this is simply that many folks can NOT visualize how powerful compounding can be when applied in this fashion.

** Cryptocurrency exchanges can have price differences for any given cryptocurrency ranging from 2% to 10% or more. The 5% rate was considered to be a conservative median.

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