PixelPlex, as a global blockchain solution provider, is constantly striving to cover different aspects of the blockchain world and make life easier for crypto traders. One of the options to profit from cryptocurrency is arbitrage, which involves making money on differences in currency exchange rates. Following the client’s requirements, PixelPlex took over the development of a platform for profitable crypto trading and integrated an arbitration bot into the system.
The PixelPlex’s developers spoke about work done and commented on the solution’s software architecture and main features. The engineering team shared that they initially set a goal to create an arbitrage tool that would help minimize risks, maximize liquidity, and perform lucrative transactions.
As a result, they have designed a cryptocurrency trading platform called Arbitrage that supports a variety of strategies and contains a crypto arbitrage bot as a key functionality. The software manages cryptocurrency trading in such a way that the user always finds and grabs the most beneficial deal on time.
Arbitrage software architecture
Any kind of arbitrage involves risks, and cryptocurrency arbitrage also remains vulnerable to them. During the process, traders have to pay transaction fees, and this often results in zero profits or exchange losses. A halt in trading caused by the accumulation of all funds on one of the exchanges may happen as well. To counter and prevent such risks, PixelPlex, together with quants, has developed an optimal search algorithm based on graph theory.
The engineering team explained how the algorithm works. First, it acquires data from the top cryptocurrency exchanges such as Kraken, Bitfinex, Bittrex, Binance, and others. The algorithm then selects the best deal and executes the transaction immediately, making sure that the trader doesn’t miss a chance if the market changes. The system operates in a way that the user can have a rest and check their balance from time to time.
How PixelPlex’s crypto arbitrage platform works
Prior to speaking on Arbitrage’s general principles of work, the developers pointed out key features of their solution. Crypto arbitrage trading is easily integrated with the existing business environment. It is carried out automatically – directly and through a minor pair.
The implemented quantitative analysis of market data exploits vulnerabilities and helps to generate profit. Meanwhile, the additional order mechanism reduces expenses. Arbitrage settings, including setting threshold values for deals, are customizable and can be adjusted according to the trader’s needs.
A crypto arbitrage bot performs the crypto trading process. A crypto bot simultaneously purchases and sells the same amount of cryptocurrency on two different exchanges and profits from the difference in exchange rates. The trade is placed in several markets at the same time. The developers noted that the maximum throughput allows thousands of transactions to be processed in less than a second.
PixelPlex is a New York-based software development company specializing in blockchain technology. The firm leverages the best of AI, IoT, and blockchain to deliver advanced custom solutions that help achieve industry-specific business goals.