![](https://images.ecency.com/DQmPEKhudVk7uPDaPcKRJDgziY8cJSguTjiYyjQMci6Bokw/arb_bot.jpg)



There's been some sneak peaks lately as to what's been going on in the markets of crypto but not many are talking about it yet. That mainly most likely means it's such a lucrative thing happening that people are not willing to spill the beans. I mean why would you, If something is making you money are you going to go tell other people how to do it while it's making you money?

The smart ones would answer no but there's a few that will still do it and those are the little hints we are seeing in the distance.

It reminds me of all of those programs that would teach you how to make money by paying them. Do you think they are going to pitch you the marketing technique while it's working for them? Hell no, they are going to use the heck out of it and then package it up to sell to you after it starts losing it's profitability in order to make more money. It's just the way it goes.

So what is it that I'm talking about?

# Arbitrage

Arbitrage is when you can take two exchanges and buy token A for $100 and then go sell it at exchange B for $101. While that transaction might cost you two times of around $0.30 each you still profited $0.40 from that trade.

For most humans this can be done but it's often to slow now. With DEX platforms coming online I often see places where I can sell a token I earned for higher on one DEX over the other and it's pretty wild and adds up to significant amounts of money over time and over doing multiple transactions.

Well now the bots are gearing up and we are seeing this become a lot more common place.

These bots are going to take over and flush things out so the wild price swings you see will most likely start to tapper out. It's pretty wild when you think about it and see it in action.

You could do this yourself without a bot but of course there's risks involved. There's also risks with bots as it has to be coded by you or someone else to work. Code it wrong and you'll be losing money left and right. Code it right and you'll be pulling legit free money by filling the gaps.

What makes these bots unique is that they can do these transactions much more quickly then a human meaning the chances of them losing out are far lower.

Mainly you want to focus on DEX and not CEX exchanges. DEX allow you to connect directly into the blockchain and make those exchanges happen fast. The bot is designed to only make the trade via smart contracts if it's profitable. 

# The Factors

For these bots certain factors come into play which I'll go over here in short and not in depth.

There are three core elements you need to look for when building your own arbitrage bot. Those being...
* The Cryptocurrency being traded (Pairs)
* The Exchanges being watched
* The Blockchain

Combining all of these comes up with a massive amount of possibilities. Now right now this has to be manually done but you can start to see the potential at the moment when things start to wildly swing in the bull market.

What I'm really curious about is if there's going to be a new blockchain in town that will be AI focused on arbitrage only. There are some of them but just like DeFi, NFTs and all of that you need to seriously do your research as any of these projects run by other people could be complete scams.

*this article is for entertainment purposes only and is not financial advice.

Posted Using [InLeo Alpha](https://inleo.io/@bitcoinflood/bots-taking-over-cryptocurrency)