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This strategy is based on the idea of buying and selling three different cryptocurrencies within the same market or exchange to return to the original currency, but with more coins due to the difference in rates.

How the arbitrage triangle works:

  1. Purchase of cryptocurrency A for the base currency (for example, buying BTC for USDT).
  2. Exchange cryptocurrency A for cryptocurrency B** (for example, BTC for ETH).
  3. exchange cryptocurrency B back to the base currency** (for example, ETH for USDT).

If the prices of different pairs are set in such a way that the amount of the base currency increases after the cycle is completed, the trader makes a profit. The main risk lies in the rapid change in rates, which can “destroy” the arbitrage window before all transactions are completed.

This method requires quick action, as arbitrage opportunities can disappear in seconds due to the high level of market automation.

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[-] bellingcat@infosec.pub 0 points 1 month ago
[-] bellingcat@infosec.pub 0 points 1 month ago

To create an arbitrage triangle on the RICHAMSTER exchange, where there is a KRB-XMR (Karbo to Monero) pair, you need to add another cryptocurrency that is traded on both pairs (with KRB and XMR). For example, you can add USDT (Tether) or another popular stablecoin pair:

  1. KRB-USDT.
  2. XMR-USDT.

This option will allow you to create an arbitrage triangle:

  1. Exchange KRB for XMR.
  2. Exchange XMR for USDT.
  3. Exchange USDT back to KRB.

Popular stablecoins such as USDT or USDC are commonly used for such transactions as they are available on most exchanges and have a stable exchange rate, which facilitates arbitrage.

[-] bellingcat@infosec.pub 0 points 1 month ago

Here’s the requested information on арбітражний трикутник:

Bibliography:

  1. Monero Observer. "shortwavesurfer2009 proposes bounty for adding 'full IPv6 support' to Monerujo." Monero Observer, January 19, 2024. Monero Observer【8†source】.
  2. Lemmy World. "New Bounty: Monerujo: add full ipv6 support." Lemmy.World, January 2024. Lemmy World【9†source】.
  3. Monero Observer. "Monero Observer Blitz #26 - January 2024." Monero Observer, February 2024. Monero Observer【10†source】.

Hashtags: #CryptoTrading #Arbitrage #CryptoArbitrage #TriangleMethod #TradingStrategy #Monero #IPv6 #Monerujo #Blockchain #DeFi #CryptoFinance

[-] bellingcat@infosec.pub 0 points 1 month ago
this post was submitted on 09 Oct 2024
1 points (60.0% liked)

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