Monitoring of Digital Exchanges

With the rising popularity of Cryptocurrencies, individuals with varying levels of trading experience are entering the field in hopes of converting their assets or making profits. While Cryptocurrencies share similarities with traditional assets, their unique nature and behavior as an asset are still being explored. In this highly competitive market, seasoned traders seek to leverage any advantages over less experienced players for financial gain. This research focuses on Cryptocurrencies and proposes a new method to maximize profits by monitoring and automatically executing trades across different digital currency exchanges in real-time when price discrepancies exist. Initially, the study focuses on a single Cryptocurrency and only two prominent exchanges (Binance and Huobi), but future work aims to enhance the proposed method, allowing for increased exchange participation and a wider range of Cryptocurrencies. Commercialization of the proposed method entails further considerations such as varying exchange commission percentages, transaction speed optimization, and identifying the most suitable exchanges for buying and selling. Preliminary results indicate that Cryptocurrency prices often differ across exchanges, but taking into account transaction fees, the cost-effectiveness of buying and selling varies. Notably, significant price discrepancies occur occasionally, but prices tend to converge after a short period of time.