Make Profit on Poloniex.com exchange
It’s been a long time since I wrote an article here and today I would like to explain a strategy on how to make some profit on a single exchange by leveraging on different pairs.
DISCLAIMER: I haven’t tested this method yet, it’s still in a theoretical stage and I don’t advise anyone to use this method with money that can’t afford to lose.
First of all, we all know that there are small gaps between pairs of a currency on BTC and FIAT (USDT, USDC, etc), even much more when we are talking about total different markets (Poloniex.com, Binance.com, Bittrex.com, etc).
Let’s take a simple case: BTC/ETH is valued at 85$ (FIAT), USDT/ETH is valued at 86.5$ (FIAT), USDC/ETH is valued at 87$ (FIAT). We also know that USDT and USDC are stable coins that should be pegged 1:1 rate to the USD (cough not today cough). Anyway, there’s also a gap between USDT and USDC that can also be exploited for some profit.
I wrote a simple script to do all the maths in real-time using Websockets connected to the Poloniex’s order book in order to provide us with accurate data.
You can check the script at https://adrian.marinescu.ch/poloniex-profit/
What are your thoughts about this? Write your comment below!
Tags: Cryptocurrency Exchange Blockchain Personal Script Tool