Now Reading
What Is the Investment Issue?
How to make money through Arbitrage? 
Is Bitcoin Arbitrage Legal?
Introduction To Crypto Currency Arbitrage
Continuing the series of articles on Abitrage
#The Idea behind Crypto Currency Arbitrage

What Is the Investment Issue?

Most cryptocurrency exchanges are non-integrated, independently owned, and country-specific operations. The order books are separate, and the exchanges lack mechanisms to ensure the best price. Further, the bitcoin settlements (registration on the bitcoin blockchain) take almost an hour, and payments can take from a few hours to several days. In most cases, investors are allowed to trade only on local exchanges, and these trades are settled through fiat currency (except for small but growing cross-cryptocurrency trades settled through tether). This dynamic, coupled with a lack of regulatory oversight, leads to governance risk, tight capital controls in many regions outside the United States and Europe, and inefficient market segmentation.

In this context, the authors analyze price formation and arbitrage opportunities in the evolving cryptocurrency markets. The findings, based on the transaction-level data, are also relevant for potential real effects of cryptocurrencies as payment and transaction mechanisms. In addition, this research adds to the study of the financial markets, especially arbitrage and price impacts of order flow.

What's Your Reaction?
Excited
0
Happy
0
In Love
0
Silly
0