Bitcoin
Out of context: Reply #2092
- Started
- Last post
- 2,736 Responses
- jonny_quest_lives1
"Lee’s first bot was simple: It monitored different trading platforms, looked for price differences to exploit and when the program identified an opportunity, it automatically bought Bitcoin on one platform and sold it on the other. Profits were small. Writing on a Bitcoin forum in 2012, Lee explained that “profitability on overall trading volume is a few % at best.”
Nonetheless, Lee’s simple arbitrage earned him a six-figure profit. Today’s opportunities — and the bots that exploit them — are more sophisticated"
Assessing the percentage of cryptocurrency trades made by bots rather than humans is difficult. Bitcoin is largely unregulated and companies don’t have to report their trading volumes. One report at the start of the year put the rate of automatically-made trades as high as 80%, helped by the arbitrage opportunities still present across exchanges, by cryptocurrency’s minimal transaction cost, by its 24-hour trading and by the ability to put trading servers right next to the exchange’s servers to minimize latency. Bot trading might be something for professionals rather than keen amateurs but there are now enough people dedicated to cryptocurrency to write the code that makes the trades.
The most important question is what the bots are doing to the market. "
- been doing this just to move money between DOT main and its parachains (which have their own hype but more volatile), a lot to learn but has worked thus farkingsteven