Arbitrage On Hive - Sustainable Finance
In a fundamental view, crypto tends to bring "trading" to a wider audience. The world has been lacking behind when it comes to understanding the metrics surrounding trading, and the compounding rate of its involvements. Everything about crypto brings us back to the basics, which is practically "trading". Though developments will come with projects unwrapping crazy ideas which is only a marketing process to create "value" out of thin air, thereby distributing to the invested. This is just something that keeps going on and on, at least the creation of Alt projects has made it possible since bitcoin in "reality" was a tested speculation showing the buying power of people who seek freedom from centralization of finance.
That said, arbitraging is really lucrative if one has the time and energy to spare. That I understand is something that's in limited supply when one has to deal with "life" which happens to be a lot of work. I'm always happy when I find new ways to capitalize on my time, at least if I'm slacking in one angle, I should have another one running to cover up. Arbitrage is trading in literal sense, there are indeed different forms of it, which I may not actually go deep into, however, this is something that is carried out across exchanges or on the same exchange. It's basically the act of watching crypto prices, entering low and exiting on the high sides. From that definition, it sure shows like trading right?
Why it differs from basic trading is that, the idea around "Arbitrage" is that one is set off watching coin prizes on different markets, trying to spot markets trading at high prices. How? Here's an example. Take bitcoin to be trading on Binance for $65,000 and you suddenly spot it on coingecko that it's trading for $65,700 on Kucoin. That's a hefty 700$ difference, arbitraging here is to immediately buy bitcoin on Binance, transfer to Kucoin and sell off, making 700$ gains. Sometimes one can arbitrage on the same exchange but it takes a lot of time and energy to spend in the markets.
I have always said that "Hive is Hustle and that is very sustainable" if you know what you're doing. I don't know how many people here would love to spend about 2-3 Hives to get 10-11 back. That's like 8 Hive profits and you still keep your initial investment. Well, it's not actually an investment because the process of losing that 3 Hive is as a result of "fees". We have a couple of amazing options here on Hive when it comes to trading and that includes leodex.io, tribaldex.com and hive-engine.com. With these three, running on the same feeless blockchain, arbitrage is quite stress less if the opportunity presents itself.
I personally arbitrage about 10 Hive playing around these three exchanges, buying and selling HBD and it worked out pretty well. Today it happens to be unfavorable, but that's the nature of the markets, you have to watch closely to catch the waves.