The lucrative nature of the cryptocurrency industry has spurred an enormous shift towards digital investments. Nonetheless, a significant portion of inverses lack the nous required to succeed in this promising sector. As result, they resort to leveraging arbitrage bots. These are computer programs that simultaneously buy, hold and sell digital assets in different markets in an attempt to make profits from the pricing discrepancy for a similar asset.
What Is DarbyBot?
DarbyBot is an ideal example of such a program that trades in digital currencies on online exchanges using arbitrage. For over a decade now, DarbyBot has preferred triangular arbitrage as its method of making profits. The triangular arbitrage tactic involves three trades, exchanging an initial currency for a second, the second for a third, and finally reverting the third into the first.
How DarbyBot Profit Sharing Arbitrage Auto Trading Bot Works
The DarbyBot keeps tabs of the prices of virtual currencies on several online exchanges.
Usually, the selling price of a cryptocurrency is higher that its buying price. On a particular exchange, this is always the case. However, upon evaluating different options, you are likely to establish a pricing discrepancy; one platform’s prices might be lower in comparison to another. Hence, you can buy the digital currency and sell it on another exchange for a small profit. Essentially, this is the function of the DarbyBot.
In the long run, the continuous arbitraging creates a state of imbalance; the exchange on which the cryptocurrencies were sold will have enormous amounts of digital currencies, while the other exchange will have low amounts of the same. On the wake of such an event, it is obligatory to rebalance before continuing with the trading process.
Since both the trading and rebalancing processes demand substantial amounts of money, the onus is on the arbitrage bot to maximize its earnings during the arbitraging window. To realize this objective, the bot needs as much liquidity as it can get. A higher liquidity translates into more trades, which in turn results into higher profits.
After acquiring the bot, all the user has to do is to configure it to their desired needs. Once this is done, the DarbyBot takes over, allowing the user to partake other activities.
The DarbyBot has a large customer base, which means it has a high liquidity. As mentioned before, more liquidity increases the profit margins.
Lack Of Control Over The Bot’S Activity –
The exchanges on which arbitraging is done as well as the cryptocurrencies used in the process are chosen by the developers of the DarbyBot.
Lack Of Control Over The Private Keys –
By using the DarbyBot, users temporarily surrender the control over their digital wallets throughout the arbitraging and trading process.
DarbyBot Profit Sharing Program
After exploring a number of cryptocurrency exchanges, the DarbyBot team realized that there is a lot of potential for arbitraging. However, due to the lack of sufficient liquidity to run this project, they opened their doors to the public via a profit sharing program. Interested individuals have to register an account on the company’s website and deposit some virtual currencies. Afterwards, they will receive a percentage of the bot’s profits on an hourly basis.