Cryptocurrency arbitrage trading can be highly profitable if done right. With price discrepancies across exchanges and volatility in the crypto markets, traders have plenty of arbitrage opportunities. However, manually identifying and capitalizing on arbitrage trades across exchanges is difficult. This is where crypto arbitrage bots come in handy.
Arbitrage bots are pre-programmed with algorithms to identify price differences and execute trades automatically to take advantage of those differences. They are much faster at scanning markets and executing trades than any human can. Using an arbitrage bot allows traders to capitalize on many more opportunities than manual trading.
However, with so many arbitrage bots and platforms available, it can be tough to identify the best ones suited for your trading needs and style. To help you out, we have compiled a list of the 15 best crypto arbitrage bots and platforms for 2023.
1. Pionex
Pionex is one of the most popular crypto trading bots platforms out there. It offers 16 pre-configured trading bots for free, including grid bots, TWAP bots, and arbitrage bots. The arbitrage bot scans for price differences across exchanges and executes trades automatically.
Pionex has integrated with over a dozen major crypto exchanges like Binance, KuCoin, Gate.io, etc. Their arbitrage bot works seamlessly across all integrated exchanges. Everything is managed from a single intuitive interface.
The platform is beginner-friendly and setting up arbitrage trades takes just a few clicks. With free usage and no trading fees (just pay gas fees), Pionex is a great option for arbitrage trading.
Key features:
- Free to use arbitrage bot
- Clean and easy-to-use interface
- Works across 12+ major crypto exchanges
- No trading fees
2. Bitsgap
Bitsgap is another leading crypto trading platform that offers arbitrage trading bots. It connects with over 25 top cryptocurrency exchanges to scan for arbitrage opportunities across them. The arbitrage bots execute trades automatically whenever profitable opportunities are found.
In addition to arbitrage bots, Bitsgap also offers portfolio management, trading terminals, trading signals, and more. So you can manage all your crypto trading activities from one place.
Bitsgap has a free starter plan. The arbitrage bots are available on higher pricing plans which start from $29/month.
Key features:
- Arbitrage bots with high-frequency trading
- Connects with 25+ top crypto exchanges
- Free starter plan available
- Portfolio manager and trading terminal
3. Coinrule
Coinrule makes it easy to set up automated arbitrage trading strategies without any coding skills needed. It offers a drag-and-drop rule builder interface to create your trading rules using over 130 pre-made templates.
Based on the rules you set up, Coinrule‘s arbitrage bots scan for opportunities across connected exchanges in real-time. It currently connects with 12 major crypto exchanges including Binance, Coinbase Pro, Kraken, and KuCoin.
You can backtest your strategies with historical data before running them live. Coinrule has a forever free plan with basic features to help you get started. Paid plans with unlimited rules start from $29.99/month.
Key features:
- No coding required to set up trading rules
- Backtesting strategies with historical data
- Connects with 12 major crypto exchanges
- Forever free basic plan
4. Shrimpy
Shrimpy is a popular tool for automating crypto portfolio management across exchanges. It also offers some basic arbitrage trading features. You can customize your arbitrage trading strategy and automate it across exchanges.
Shrimpy currently connects with over 16 crypto exchanges to scan for and capitalize on arbitrage opportunities. It executes all trades through exchange APIs so there is no need to deposit funds on Shrimpy itself.
While the portfolio automation features are free, the arbitrage bots require a paid subscription starting at $8.99/month. But they offer a free 14-day trial to test it out.
Key features:
- Automated arbitrage trading across 16+ exchanges
- Free portfolio management features
- 14-day free trial on arbitrage bots
- Executes trades through exchange APIs
5. Quadency
For advanced traders, Quadency offers professional-grade trading bots for automation. This includes high-frequency arbitrage bots that can exploit even the smallest price discrepancies across exchanges. The platform connects with all major exchanges like Binance, Coinbase Pro, Bittrex, Kraken, KuCoin, etc.
Quadency‘s arbitrage bots execute trades quickly through exchange APIs. You can customize the trading parameters as per your strategy. It also offers paper trading and backtesting features to test strategies risk-free before going live.
Pricing plans for access to arbitrage bots start from $49/month. But they offer a 30-day free trial to try out the platform.
Key features:
- High-frequency arbitrage trading bots
- Connects with all major crypto exchanges
- Paper trading and backtesting
- 30-day free trial on paid plans
6. NapBots
NapBots is a crypto trading platform providing automated trading bots, including arbitrage bots. The arbitrage bots scan for price discrepancies across crypto exchanges in real-time. Based on configurable trading parameters, they execute profitable arbitrage trades 24/7.
NapBots connects with major exchanges like Binance, Coinbase Pro, OKEx, Bitfinex, etc. for arbitrage trading. You don‘t need to transfer any funds to NapBots itself since all trades are executed via exchange APIs.
They offer a free trial for 3 days to test the platform. Paid subscriptions start from $29/month for the basic plan.
Key features:
- 24/7 automated arbitrage trading
- Trades executed via exchange APIs
- Free 3-day trial period
- Connected with major crypto exchanges
7. Trality
Trality provides a code-free bot building platform for algorithmic crypto trading. Even without any coding experience, you can build automated arbitrage bots through their visual editor interface.
The arbitrage bots can scan for price differences across multiple exchanges in real-time. You can configure trading pairs, indicators, market conditions, etc. to create your bot strategy without coding.
Trality connects with major exchanges like Binance, Coinbase Pro, Kraken, Bittrex, and KuCoin through API connections. Currently, they offer a free trial for 15 days to try out the platform.
Key features:
- Code-free visual bot editor
- 15-day free trial period
- Connected with top crypto exchanges
- Drag and drop interface to build bots
8. Cryptohopper
Cryptohopper is one of the most popular trading bots in the market equipped with comprehensive trading features. This includes arbitrage bots that can trade across exchanges 24/7 and capitalize on price discrepancies.
You can configure parameters like spreads, candle times, trading amounts, etc. based on your strategy. The platform connects via APIs with over 100 cryptocurrency exchanges for scanning arbitrage opportunities.
Cryptohopper offers a free trial for 7 days to test the platform. Paid subscriptions start from $19/month for basic features.
Key features:
- Automated 24/7 arbitrage trading
- Configure trading parameters
- Connects with 100+ crypto exchanges
- Free 7-day trial period
9. HaasBot
HaasBot is another leading crypto trading platform providing fully automated trading bots. Their arbitrage bots can trade across all major exchanges like Binance, Coinbase Pro, Kraken, etc. to profit from price differences.
You can customize advanced parameters like acceptable profit margins, maximum trading limits, etc. for arbitrage trades. HaasBot ensures high-speed order execution for capturing even small arbitrage windows.
HaasBot offers package plans based on the number of bots needed. You can try a 3-bot plan for $250 or get the top 10-bot plan for $600.
Key features:
- Highly customizable arbitrage trading bots
- Connected will all major crypto exchanges
- Fast order execution system
- Bot package plans
10. Blackbird Bitcoin Arbitrage
Blackbird Bitcoin Arbitrage is an open source arbitrage trading platform specifically for Bitcoin. It supports automatic arbitrage trading between the most popular Bitcoin exchanges like Coinbase Pro, Bitstamp, Kraken, Gemini, etc.
The platform scans the markets in real-time and executes arbitrage trades when opportunities arise. You can configure trading parameters like spreads, maximum trading amounts, etc.
Since it is open source software, Blackbird is free to download and use. However, you need working knowledge of Python for configuration and setup.
Key features:
- Open source Bitcoin arbitrage software
- Supports top Bitcoin exchanges
- Free to download and use
- Python coding language for setup
11. Botsfolio
Botsfolio offers automated crypto trading bots for arbitrage, market making, etc. Their arbitrage bots scan markets in real-time to identify profitable arbitrage opportunities. Based on your configured trading rules, they execute trades between exchanges via API connections.
The platform connects with all major spot exchanges as well as derivatives platforms. You can set parameters like order types, maximum slippage, spreads, base/quote coins, etc. as per your trading requirements.
Botsfolio has a free Community plan. The arbitrage bots are available on paid Starter ($25/month) and Pro ($75/month) plans.
Key features:
- Automated arbitrage trading bots
- Connects with major spot & derivatives exchanges
- Configure trading parameters
- Free Community plan
12. Hummingbot
Hummingbot is an open source trading bot platform with algo-based arbitrage trading capabilities. It lets you create and run high-frequency arbitrage bots between decentralized and centralized exchanges.
The platform offers a visual editor interface to configure trading pairs, spreads, order amounts, etc. without any coding required. You can also tweak strategies by editing the raw Python code if desired.
Since Hummingbot is open source, it can be downloaded and used for free. Liquidity mining programs are available to earn rewards.
Key features:
- Open source platform with arbitrage bots
- Visual editor for no-code setup
- Liquidity mining rewards program
- Free to download and use
13. GunBot
GunBot is a popular trading automation platform providing arbitrage bots for crypto trading. The bots scan connected exchanges and execute trades based on technical indicators and custom trading strategies.
GunBot offers ready-made scripts as well as custom coding options in its TradingView-like Pine Editor interface. You can set up or code your own arbitrage strategies without API knowledge.
The platform connects to thirty major crypto exchanges for arbitrage trading. But exchange APIs are not included by default and need to be purchased separately. GunBot has a one-time license fee starting from 0.1 BTC.
Key features:
- Ready-made and custom trading scripts
- Connects with 30+ crypto exchanges
- Pine editor for coding strategies
- One-time license fee
14. CryptoTrader
CryptoTrader is a cloud-based trading bot platform providing automated arbitrage trading features. The bots can scan markets on connected exchanges in real-time and trade based on embedded or custom algorithms.
Strategies can be configured via drag-and-drop bot builders without manual coding needed. You can also backtest strategies before running them live to assess their effectiveness.
The platform connects with major exchanges like Binance, Bitfinex, Kraken, Coinbase Pro, KuCoin, etc. for arbitrage trading. Subscription plans start from $14/month for basic features.
Key features:
- Cloud-based trading bots
- Drag-and-drop strategy builder
- Backtesting tools available
- Connected with major crypto exchanges
15. Exchange Valet
Exchange Valet is a desktop-based crypto trading bot packed with features. It provides the ability to run 24/7 arbitrage trading bots across exchanges. You can set custom trading rules and parameters for automated arbitrage between markets.
The platform connects with over a dozen crypto exchanges like Coinbase Pro, Binance, Bittrex, Bitfinex, Poloniex, etc. Strategies can be backtested across multiple years of historical data before live trading.
Exchange Valet offers a 30-day free trial period. Paid subscriptions for arbitrage bots start from $29.95/month. Lifetime licenses are also available.
Key features:
- Desktop-based trading automation software
- Backtesting tools with multi-year data
- 30-day free trial period
- Connected to 15+ crypto exchanges
What is Crypto Arbitrage Trading?
Cryptocurrency arbitrage involves exploiting price discrepancies across multiple exchanges to make a profit. Arbitrage opportunities arise frequently in the crypto markets due to inefficiencies across platforms.
For example, BTC may be trading at $40,500 on Binance while it is available for $40,800 on Kraken. An arbitrage trader can buy BTC cheap on Binance and immediately sell it at a higher price on Kraken to pocket the $300 price difference.
As lucrative as it sounds, crypto arbitrage also has its own risks and challenges. Let‘s take a look at some key aspects of arbitrage trading:
Arbitrage Opportunities are Short-Lived
Profitable price discrepancies only last for brief periods before getting arbitraged away. Speed is critical to capitalize on opportunities before markets correct the inefficiency. Arbitrage bots can execute trades much faster than manual traders.
You Need Funds Across Multiple Exchanges
To benefit from inter-exchange arbitrage, you need to have funds ready on multiple platforms. Manually transferring funds can take too long. Using APIs and keeping funds on exchanges is optimal.
Order Delays and Execution Risks
Delays in order matching or execution beyond the arbitrage window can lead to losses. Bots help minimize risks through high-speed order placement.
Trading Fees Can Eat into Profits
Deposit, withdrawal and trading fees charged by exchanges can take away a chunk of profits from small arbitrages. Trade larger volumes or use fee-free bots.
24/7 Monitoring is Required
Markets need to be monitored round the clock to catch short-lived opportunities. Running automated bots allows 24/7 trading.
Tips for Successful Crypto Arbitrage
Here are some tips to maximize your arbitrage trading profits:
- Use bots – Automated bots are a must for 24/7 trading and catching opportunities faster than humans.
- Minimize fees – Choose exchanges and arbitrage platforms with low or no trading fees to maximize profits.
- Analyze volumes – Scan for good volumes on both legs of the trade to execute orders fully.
- Keep funds on exchanges – Maintain funds across multiple exchanges ready for arbitrage trading.
- Try leverage – Use available leverage on exchanges to maximize profits from small discrepancies.
- Watch slippage – Use limit orders and optimize trade sizes to minimize slippage.
- Backtest strategies – Test effectiveness of parameters before live trading.
- Track profits – Monitor performance to continuously refine strategies and improve profitability.
Common Arbitrage Trading Challenges
While arbitrage looks lucrative, it does come with a few key challenges:
Verification Delays
One exchange may require more time to verify transactions before funds can be moved. The arbitrage window could close by then.
Sudden Price Changes
A drastic price change can occur between placing and filling orders. This price slippage can lead to losses.
Low Liquidity
If the volume on one exchange leg is too low, the orders may only partially fill. This impacts profitability.
Exchange Down Times
Temporary exchange downtimes for maintenance can also cause trades to fail. Bots help manage such risks better.
Blocked Accounts
Exchanges may block accounts showing suspicious activity like excessive API trading. Diversify across multiple accounts.
Submitting Wrong Orders
Entering incorrect order details can cause losses. Bots minimize such manual trading risks.
The Verdict? Yes, Crypto Arbitrage Can Be Profitable!
If you are alert, quick and use the right tools, crypto arbitrage trading can indeed be immensely rewarding. The key is using smart arbitrage bots to maximize opportunities better than manual trading ever could.
Based on your trading style and requirements, choose a suitable bot platform from our list of the top 15 options. Analyze past performance and user reviews before selecting.
Start with paper trading and backtesting before allotting real capital. Optimize your strategy before active trading. With the right platform and effective risk management, crypto arbitrage can deliver solid profits as a market-neutral strategy.
