Could you imagine there is a piece of computer software that allows you to take advantage of the exchange rates at two different crypto platforms? Such software is referred to as a crypto arbitrage bot and is an excellent tool for API traders.
In this blog post, you will find out how implementing this software can improve your CEX.IO API trading. You will also learn about the latest crypto industry trends and developments, along with the CEX.IO updates.
Cryptocurrency and Bitcoin Arbitrage Bots
A cryptocurrency arbitrage bot is computer software that buys and sells the same amount of crypto on two different exchanges to reap profit from the difference in the exchange rates.
As the price gaps between the exchanges can be closed within seconds, crypto arbitrage bots can simultaneously place the two transactions without actually transferring crypto coins from one account to another.
To link with cryptocurrency exchanges, crypto bots require an application programming interface (API). To make the most of the arbitrage bot on the CEX.IO exchange, you can implement the crypto trading API. CEX.IO enables you to get real-price feeds for 200+ trading pairs, subscribe to order books, and monitor your trading history.
A crypto arbitrage bot is made up of a set of commands that continually check crypto prices on various exchanges. Whenever it spots a price gap on two (or more) exchanges for the identical trading pair, it takes action automatically.
The purpose of a cryptocurrency and Bitcoin arbitrage bot is to purchase crypto coins at a lower price on one exchange, then sell them higher on another crypto exchange. To accomplish that, the bot commonly short-sells crypto on a more expensive platform and purchases the same amount on a cheaper one.
Two essential components for running crypto arbitrage bots are live, as well as historical, data feeding, and real-time links with crypto exchanges. The real-time and historical data are necessary as the former contains price information and exchange order records, while the latter involves previous transactions, a user’s trade history, and account balances.
Connection to cryptocurrency exchanges can be achieved through a crypto trading API. CEX.IO offers the two most frequently implemented APIs in the crypto industry — WebSocket API and REST API. With them, you can link crypto arbitrage bots to the CEX.IO exchange, then let them place trades on numerous markets and trading pairs.
Some of the trading bots you can consider implementing in your API trading is HaasOnline. It is a crypto trading platform that is dedicated to offering advanced trading services.
HaasOnline.com has an exclusive offer for CEX.IO traders that shouldn’t be missed. Starting from August through September, 25 CEX.IO customers will be able to get HaasOnline trial licenses with the coupon code vr2em2by. Don’t miss an opportunity to boost your trading with HaasOnline software or cloud services.
To help you learn more about API trading, CEX.IO has created a Telegram group where traders can discuss their API-related requests, questions, or hesitations.
New coin listings/trading pairs
Euro Coin (EUROC)
Euro Coin (EUROC) is launched by Circle under the identical full-reserve model as USD Coin (USDC). Created for stability, Euro Coin is supported by euros kept in euro-denominated bank accounts. Thus, it can always be redeemed 1:1 for EUR.
As a euro-backed stablecoin, EUROC is applicable 24/7 and moves at internet speed. Both USDC and EUROC open new potentials for multi-currency digital finance and almost instant foreign exchange in which daily volumes in classical markets can reach $6.6 worldwide.
You can learn more about EUROC in our spotlight piece.
Euro Coin is meant for everyone who has an internet connection, aiming to improve access to the euro across national borders and time zones.
Algorand (ALGO)
Algorand (ALGO) is both a cryptocurrency and a blockchain platform. It has been created to process numerous transactions swiftly, much like large-scale payment processors such as VISA or Mastercard. The network can host other crypto and blockchain-based projects, which makes it a direct rival to Ethereum.
Algorand is open-source, so anyone can access, view, and contribute to its code. It works on a pure proof of stake (PPoS) protocol that mobilizes network operators from the overall pool of ALGO holders. The network’s native token, ALGO, is employed to secure the blockchain and pay for processing transaction fees.
You can find a detailed overview of ALGO here.
Crypto industry news
Lummis-Gillibrand crypto bill might be postponed until next year
The most recent attempt to categorize Bitcoin and Ethereum as commodities and the majority of altcoins as securities will probably be delayed until next year. According to Senator Synthia Lummis, senators who aren’t knowledgeable about crypto need more time to grasp and digest the proposals. As Lummis stated, the topic is too comprehensive and completely new to many Senators, so they can’t digest it thoroughly in just a few remaining weeks.
To remind, on June 6, The Responsible Financial Innovation Act was introduced to the U.S. Senate with the goal of Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) role in the cryptocurrency and stablecoins regulation, together with banking, digital asset tax treatment, and interagency coordination.
Even though it may take time until the bill has passed, Gillibrand claims that Senators have realized the need to protect consumers first. The duo state they have noticed positive reactions to the bill from both Republicans and Democrats.
Crypto products/Altcoin news
Crypto regains a $1 trillion market cap
Despite the bearish market that is still on, the overall crypto market cap has recaptured the $1 trillion level. It is now nearly as valuable as all the silver on the globe.
Bitcoin (BTC) has reached the $22,500 range, whereas Ethereum (ETH) attained the $1,500 mark. The joined efforts have resulted in a 4.8% push to the whole crypto market, raising it to a recent high of $1.02 trillion.
Dogecoin (DOGE) launched a new update to boost security
The DOGE fee mechanism was enhanced with the inclusion of the latest upgrade. With it, dust limits for all participants in the network have been reduced from 1 DOGE to 0.01 DOGE. This new software update advances the network’s efficacy, security, and user interface.
The new update includes multiple security fixes, changes to the current fee structure, and other new features. All DOGE participants were required to upgrade to the latest software version.
Ethereum confirms the merger date
The Ethereum mainnet is only one testnet merger away from the official transition to the proof of stake (Pos) protocol. After numerous shadow forks and mergers, the long-expected journey has come to the final stage when the final testnet merge to the Beacon chain was announced.
The Goerli merger calls for node operators to simultaneously update both their consensus layer and execution layer instead of just one.
The transition to PoS started in December. Phase 0 out of the three-staged process was initiated with the launch of the Beacon chain. The current Phase 1 was supposed to end by 2021. Yet, multiple delays and incomplete works on the developers’ end postponed the transition by the end of September. The final stage is expected to end by late 2023.
Company news
CEX.IO ranked in the top ten exchanges by Kaiko
CEX.IO received an AA grade and was ranked 8th by the Kaiko Exchange Ranking Score for Q2 2022. Kaiko is an eminent provider of crypto market data for enterprises. Its ranking methodology encompasses numerous elements ranging from governance to technology.
CEX.IO is proud to have its high-quality services recognized by Kaiko.
Disclaimer: Information provided by CEX.IO is not intended to be, nor should it be construed as financial, tax or legal advice. The risk of loss in trading or holding digital assets can be substantial. You should carefully consider whether interacting with, holding, or trading digital assets is suitable for you in light of the risk involved and your financial condition. You should take into consideration your level of experience and seek independent advice if necessary regarding your specific circumstances. CEX.IO is not engaged in the offer, sale, or trading of securities. Please refer to the Terms of Use for more details.