Short explanation of VAROOM strategy and why it is better than traditional arbitrage.
In Cloud Token we are talking about arbitrage in a slightly different way than it is known from its common definition!
Here we deal with HOLDing in pairs. It means that it is an arbitrage between pairs, not between the exchanges. Every second 300 pairs of crypto is being watched.
Trade on cryptocurrencies is not so much a question of their value but of a large amount, and that is the whole secret. The greater amount of assets, the fixed fees on the exchanges are lower, and each of thousands transactions per month becomes profitable even with a small percentage of profit.
Example: If BTC price is $5000 and I have $5000, I can purchase 1 BTC. If BTC price is $2500, I can purchase 2 BTC, using $5000. So if the prices of BTC fall, the bot buys to exchange for more BTC. In next step, BTC is combined with other cryptocurrencies for arbitrage on cryptocurrency pairs within the same exchange.
So, this is not a classic arbitrage, i.e. buying $5000 on binance and selling it for $5010 on bitmex. The withdrawal time and transaction fees cause that such trade is out of date. Arbitrage is therefore used here on different cryptocurrency pairs, which helps you to avoid various costs.