There are various trading bots that allow investors to automate their trades and exploit arbitrage opportunities effectively, including, for example, AMD 3Commas and Bitsgap. Trading bots and calculators use APIs (Application Programming Interfaces) to connect and trade on multiple exchanges while operating from a custom dashboard. Traders use this kind of bots to trade faster than humans. However, you must consider that by relying on a third-party trading bot, you have no control over your trades: if you are a professional trader, it’s advisable to build your own trading bot to have full autonomy and control without entrusting your funds to third parties.

Before starting to use advanced tools, evaluate their cost and how they will impact the profitability of each trade. By using multiple tools, bots, and exchanges, you’re highly reliant on third-party systems, meaning that the effectiveness of trades depends on the stability and responsiveness of various applications. Crypto arbitrage trading includes multiple strategies that can be used depending on the situation, tools available, and trading methods, including spatial arbitrage, triangular arbitrage, decentralized arbitrage, statistical arbitrage, and cross-border arbitrage. If an exchange has downtime or executes the order slowly, it can affect the profitability of the trade, causing a loss.

Additionally, although they generally guarantee a high uptime (period of time during which the tool is used without any problems), these tools may not work at certain times, creating issues for the trader. Consequently, new traders usually don’t have the competence to use advanced tools, and they are destined to be used mainly by advanced traders and professional trading firms. Most of these tools come with monthly subscription fees and/or percentage earnings on trades, making it worth it to use them only if you trade with a significant amount of funds. Setting up these kinds of tools requires a high level of knowledge and expertise, both in technical configuration and trading skills.

Arbitrage traders use sophisticated tools to scan the market and exchanges for opportunities and to automate their strategy, executing trades quickly. Traders use tools like CryptoArbitrageBot to scan multiple exchanges instantaneously, identifying price differences across multiple exchanges quickly. In this way, they know in real-time the price of each asset on every exchange, allowing them to implement their arbitrage strategy without manually checking the price of the assets on multiple exchanges.

By using advanced tools such as arbitrage calculators, trading bots, portfolio trackers, VPNs, and more, traders can operate in a semi-automated and quantitative way, reducing the need for emotional control, advanced skills, time, and effort. Consequently, tech tools – when used properly – can do most of the work and enhance the feasibility of crypto arbitrage trading. Since this strategy relies on well-known methods, there is increasing competition, with trading firms and retail traders using all the same tools and trading strategies.