Arbitraging is a popular way of earning via cryptocurrency, as it provides the thrill and satisfaction of trading. If you play your cards well, the difference of price between two exchanges can be really rewarding. Arbitrage, simply put is buying cheap on one exchange and selling high on another.
With so many exchanges and cryptocurrencies, it is almost impossible to keep track of arbitrage opportunities manually. But there are a few platforms that keeps track for you and shows the best opportunities to you in real time. But which one to use out of them? We need to find out.
Website and Mobile App
This is the easiest of all tests. While it is a subjective choice to use an app or website for arbitraging or checking the price of crypto, we will give a point to platforms which are having both – app as well as website.
- Coinhero has a responsive website for mobile but no app
- Cryptoniffler has an android app but no website
- Koinknight has a website only and they have a presence on telegram
Winner: Three Way Tie
Price Comparison Data – Spread across exchanges
- Coinhero has a dedicated page with price comparison data for Indian exchanges and Indian exchanges compared to International exchange like Bitfinex or Binance.
- Cryptoniffler provides price comparison between exchanges after choosing the cryptocurrency and estimated amount in INR to buy/sell. I do not see any value in the added step.
- KoinKnight provides a dedicated page for tracking price spreads, but does not provide details of all exchange prices for a particular coin on one page.
Winner: Coinhero wins this round for providing the quickest way to check prices on Indian exchanges or some international exchanges.
Number of Exchange pairs available
The bigger the buffet, the more you can taste. While it may be confusing to keep track of many assets together on multiple exchanges for humans, it is not a difficult task for a computer program. So let us compare how many exchanges we can ‘compare’ on each of these platforms.
- Coinhero tracks 11 Indian exchanges and 2 International exchanges.
- KoinKnight tracks 7 Indian exchanges and 7 International exchanges
- Cryptoniffler tracks 9 Indian exchanges and unknown number of international exchanges
Although unknown, I can see cryptoniffler showing arbitrage opportunities between international exchanges like Okex, Binance, Coinexchange, cryptopia and so on.
Winner: Tie between KoinKnight and Cryptoniffler. Both the platforms show data from widely used exchanges in India and Internationally. Sometimes the numbers do not matter, it is the quality of exchanges that matter more.
There are mainly two types of arbitrage. Direct and indirect. Direct arbitrage is when you buy a particular crypto on one exchange and sell the same on another exchange. Indirect arbitrage involves multiple trading activities and exchanges like Buying Bitcoin on Koinex, converting to DGB on Bittrex and selling DGB on Coinome. Which of these platforms provide the best data?
- Coinhero provides data for direct arbitrage only. Exchange Fees are mentioned for manual calculation.
- Koinknight provides data for both direct and indirect arbitrage. Koinknight also provides data for intra-exchange arbitrage, meaning buying and selling within the same exchange. Fees are inclusive. Koinknight also provides the approximate time that the whole transaction can take.
- Cryptoniffler provides direct and indirect arbitrage opportunities. Fees are inclusive in the calculation.
Winner: Koinknight wins this round by a very small margin for providing approximate time taken. Another feature stands out, not really profitable but takes almost no time for arbitrage – Intra Exchange arbitrage.
We already discussed that a human brain cannot keep track of every coin across many exchanges, hence we need such tools. But we might not find time to keep track of the arbitrage tools all day long. Hence, we need alerts. Alerts such as notifying when there is an arbitrage opportunity of 5% profit or more. Or alerts of arbitrage chances in your favourite exchanges.
Currently only KoinKnight provides arbitrage alert services, but only on telegram messenger. You can set up alerts on the website, but the alert notifications are sent on Telegram messenger from the Koinknight bot.
Both KoinKnight and cryptoniffler are good for arbitraging data. But unless there is a bot that can trade on all these exchanges immediately with a press of a button, you have to manually manage the transactions and be careful you are still in profit.
I would go for Koinknight because of their telegram alerts and I would prefer cryptoniffler for having an android app. We did a video review on Koinknight before and we will soon do one on Cryptoniffler too.
Coinhero is not great for arbitraging alerts, but it is amazing to track all the prices on one page. So each one has its own merit.