What is risk-free arbitrage?
The risk-free arbitrage mentioned here refers to the behavior of obtaining the spread by buying on a low-priced platform and selling on a high-priced platform when there is a price difference between various blockchain asset trading platforms.
Before you can complete a perfect risk-free arbitrage, you need to solve the following problems.
1) Fiat currency recharge and withdrawal problems
2) The “time difference” problem
3) Transaction fee and cross-platform withdrawal fee
Next, I will expand on the solution.
Regarding the recharge and withdrawal of fiat currency:
First of all, it is necessary to hold digital currency on two different exchanges at the same time. Only when two different exchanges have held digital currency at the same time can quickly realize risk-free arbitrage when the price difference is discovered at the first time. If there is no digital currency in the exchange account, the digital currency can only be purchased through over-the-counter (C2C) transactions.
Since there is a premium to buying digital currency with fiat currency, it is unrealistic to buy through fiat currency and then sell it. An effective solution is through the arbitrage pool of 7DOGE wallets.
Why can the 7DOGE-Fidelity Arbitrage Fund help achieve risk-free arbitrage?
7DOGE-Fidelity Arbitrage Fund currently has two fund products: one is a capital pool for fast and real-time arbitrage services, which is also called the cornerstone fund of the arbitrage fund. At present, the main investors of the cornerstone capital pool of arbitrage funds are American Fidelity Fund, Japan’s SoftBank Group, Andressen Horowitz, a well-known Silicon Valley venture capital group, Union Square Ventures, and Citigroup. Cornerstone Fund, as the underlying asset of Fidelity’s arbitrage products, needs to hold various mainstream digital currencies for a long time, and will naturally face losses caused by the possible decline of digital currencies. In return, Cornerstone Fund will also receive every Fidelity arbitrage fund. 30% of the arbitrage profit as a return.
About “time difference” and transaction fees, cross-platform withdrawal fees
After discovering the price difference, you need to do the 4 steps of deposit-transaction-transfer-transaction to complete an arbitrage. This process takes about 20 minutes or even longer to complete, and 90% of the time is spent on recharging and cross-exchange transfers. There is a very large possibility that an arbitrage process has not been completed, and the price difference between the two sides will disappear. In addition, there may even be a deficit, so that no profit can be achieved. What is even more troubling is that there are mining fees and transaction fees generated during the arbitrage process.
How to avoid this situation?
The same principle can still be achieved by borrowing arbitrage fund products. We can use the 7DOGE wallet to click on the subscription arbitrage to achieve no time difference to capture arbitrage opportunities. You also don’t need to consider the time difference between arbitrage and various miner fees and withdrawal fees between exchanges.
Through the above analysis, using the cornerstone fund of the 7DOGE arbitrage fund for arbitrage, we can achieve:
1) Fully automated entrustment operations, many arbitrage funds are now fully automated by AI to capture arbitrage opportunities, and do not need to be in front of the computer 24 hours a day.
2) “No jet lag” hedging arbitrage saves the time for token (token) withdrawal, recharge and packaging, if it is operated on a computer for 5 minutes, it is more than enough;
3)”Low currency consumption” Hedging arbitrage only needs to be recharged once in an arbitrage wallet, avoiding the consumption of tokens due to repeated recharge and withdrawal.
Website：www.7DOGE.com
