Bitcoin hedge arbitrage 2018

1. 1、 Cryptocurrency
firstly, the scope of cryptocurrency is the smallest, including digital currency or virtual currency. For example, we can say that bitcoin is a kind of digital currency / virtual currency, but we cannot say that digital currency / virtual currency is a kind of bitcoin
furthermore, only currencies based on blockchain Technology (including cryptography and encryption algorithms) can be called cryptocurrencies. So cryptocurrency is a word specially prepared for bitcoin, Ethereum, and a lot of currencies based on blockchain technology. For example, CT currency and trip currency on the coin exchange platform
2. Legal currency
means that it does not represent the real goods or goods, and the issuer has not fulfilled the obligation to cash the currency in kind; A currency that becomes legal currency only by government decrees. The value of fiat money comes from the owner's belief that money will maintain its purchasing power in the future. Money itself has no intrinsic value, that is to say, when paper money comes into being, legal tender is essentially the paper money that can be circulated according to the law.

2.

In short, the principle of brick Arbitrage: buy low and sell high, buy money from the place with low price and sell it at the place with high price, that is to earn the price difference of different platforms

but there are three risks in moving bricks:

A. time difference of currency transfer: it takes a certain waiting time to pick up or deposit the currency, so it may miss the best trading time

B. currency price fluctuation: if the currency price fluctuation is relatively large and the process of moving bricks has not been completed, the price difference has disappeared

C. platform problems: some trading platforms may shut down services from time to time, or even run away

principle: carry out brick arbitrage on two platforms at the same time to avoid the risk of "time difference of currency transfer" and "currency price fluctuation"

before moving bricks: the brick moving platform must support the same currency transaction, and the brick moving platforms must be able to transfer currency to each other

Step 1: price difference calculation. There are handling charges for currency trading and currency transfer, so you have to calculate the cost according to your own funds. Only when the price difference reaches how much can it be profitable to move bricks

Step 2: simultaneous operation. Buy BTC on the low price platform and sell BTC on the high price platform. At this time, the number of BTC holdings remains unchanged and the number of usdt increases You need to pay attention to transaction fees.)

Step 3: balance funds. It is difficult to predict which platform has a lower price and which has a higher price e to the price difference. Therefore, the two platforms that move bricks need to prepare usdt and BTC. When the price difference appears, it is convenient to move bricks There are also handling charges for cross platform currency transfer.)

the above is the principle and steps of risk-free arbitrage using BTC and usdt. It also has a big name: quantitative hedging. The fundamental purpose is to earn usdt, not BTC

You can take a closer look at this: Web links

3. There is bitcoin arbitrage, and since the day bitcoin can be traded, there is bitcoin arbitrage. Moreover, bitcoin arbitrage is very popular in China. It was once very popular and made many people rich. But recently, it is unrealistic and the price has stabilized. And this project is even more unreliable
it is not only bitcoin that has arbitrage, but also Leyte, Ruitai and doggy.

4. For example, the current price of bitcoin is US $10000

1. Suppose you use RMB 10000 to open 20 times leverage to do long
2. At the same time, you open 5 (4 hours) put options to hedge in bitoffer (US $250 cost)

in the first way, when bitcoin rises by US $500, the increase is 5%

1. If you use 20 times leverage to do long, the contract will double, that is to earn RMB 10000
2 Put options lose principal, that is, 250 US dollars (1750 yuan)
3, 10000-1750 = 8250 yuan (net profit)

the second, when bitcoin drops 500 US dollars, that is, a 5% decline

1, 20 times leverage, contract burst, loss 10000 yuan
2, five put options gain 2500 US dollars, that is 17500 yuan
3, 17500-10000-1750 = 5750 yuan (net profit)

5. Of course, it's possible. The price changes rapidly. There will be a price difference if there is an occasional fluctuation. Where there is a price difference, there will be arbitrage. The price difference we see is flat at the moment, which is the result of arbitrage< There are two difficulties:
1. The reason is that only big funds can have considerable income, and only big funds can arrange deposits in various accounts. Buy this box and sell that one. You can refer to the previous use of Alipay (balance treasure) transfer does not require fees, because Celestica's large amount of funds stored in various banks, the daily customer hedging results. And this kind of business can only be completed with large capital
2. Speed. Arbitrage opportunities are fleeting, so only fast can seize the opportunity. The reason why Everbright's ETF was able to arbitrage before, and after oolong, it was able to inject so much capital into the market in a short period of time. Without it, it is only quick. It is said that in order to compete for this kind of safe arbitrage means, the competitors have reached the point of "competing physical distance".

6. That must be true. It can be solved

7. Make a run is, need to download the address I can provide

8. The boss Chen Haibo has been running for more than a month, and in September 2018, he became a riot
there is no arbitrage Fund... It's the Ponzi scheme.