Some of us want quick profits from Crypto. We don’t like to HODL & PRAY. We want to buy and sell and make small profits but quickly. The process is called Arbitrage. Arbitrage is the concept of buying low on one exchange and selling high on another one. That is however the broader sense. Arbitraging can also go Three-way, buying one crypto on one exchange, sending it to another, exchanging it for a new crypto, then transferring it to a third exchange and then selling it for profit. All this for that 1-10% profit immediately available in Arbitraging.
There are many websites and apps out there that keep a tab on prices across various exchanges. Websites like CoinHero even has a webpage dedicated to Arbitrage opportunities. Price tracking apps like Tikolio tells you the best place to buy and sell a single crypto. But, there was no website that tells you 3 way arbitraging opportunities. Enter KoinKnight.
KoinKnight – Arbitraging Website
KoinKnight.com, is a new website that at the time of this writing tracks prices from 8 Indian/International exchanges to calculate the arbitrage possibilities. It was developed by Bikash Gupta and Ayush Mittal.
The website is simple. It tells you the following details:
- Which Crypto to buy, how many units and how much it will cost on one Indian exchange.
- Where to sell it for which other currency. Usually this is BTC on Binance.
- Buy a new currency for the BTC bought in Step 2.
- Sell them on another Indian exchange.
The calculations include the buying/selling fee, the withdrawal fee and another other charges. The final total on the screen is your profit from arbitraging. Have a look at the below screenshot.
KoinKnightBot – Arbitrage Notification Bot on Telegram
Koinknight is just not limited to a website. The @KoinKnightBot is available to be added to any telegram group or channel. The Bot sends arbitraging notifications when the profit crosses 2.5%. You can get a message like the one below
Arbitrage opportunity in OMG via Binance.
If you buy OMG from Koinex and convert it to RPX in Binance and sell it on BitBns, you can make a profit of 6.01%.
But there are some rules for the bot, set in order to not spam you with notifications. Unlike the website, the bot does not refresh every minute.
If the bot sent a notification of Arbitrage of 3%, another notification will not be triggered for another 2 hours if there is no arbitrage available greater than 5.5% (3% current Arb + 2.5% trigger minimum setup).
Are users benefitting from these?
There are both sides to the story. We have verified ourselves that the Arbitrage opportunities are not incorrect. The problem though is the volume of these exchanges. Thanks to the current price Slide, the volumes on the exchanges have dropped more than 90% since December. This doesn’t leave much room for arbitraging if you are a high volume trader.
However, some users have smartly used Koinknight to make thousands. Here’s the story of Ravi Chotaliya.
I set a target for the day first, like today I will make INR 1000 wether the market is Bullish or Bearish. Then I pick 2/3 coins. I have account on all Indian exchanges. I check the KoinKnight Arbitrage page. When KoinKnight arbitraging and my plan (The target coins and exchanges) match, I do the transactions.
Ravi is still profiting from 2 way transactions between Indian exchanges. He says he tried the 3 way transactions too with Binance. Ravi isn’t the only one benefitting from this. Many users try it but not all are successful. The volumes on exchanges do play an important role for the quick buying and selling at the effective rates.
What Now from here?
Bikash and Ayush are working hard on improving the platform. They are taking note of user feedback and making updates as and when needed. One of the improvements we will see soon is the trigger limit on the bot. Right now it is set to 2.5%, but they are planning to change it to double. Hence if the current arbitrage is 3%, only if an arbitrage more than 6% is available, a notification will be sent.
You can connect with the KoinKnight community on telegram.
Bikash Gupta can be reached here.
Ayush Mittal can be reached here.
Coin Crunch and I can be reached here.