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The best crypto-asset for arbitrage

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Maximizing Profits: Identifying the Top Crypto-Asset for Arbitrage Opportunities

One of the most common questions asked by arbitrage clients, is “what crypto currency do you trade in?”. Concerns around this emerge from headlines bombarding news pages about the volatility of currencies such as Bitcoin, ripple, tether and Ethereum. To put the minds of clients at ease, Fivewest trades in stable coin arbitrage.

What is a stable coin?

The crypto market seems to be ever-changing, evolving and most of all moving. Since the beginning, cryptocurrencies like Bitcoin, Ethereum, and Litecoin have allowed anyone to take an active role in the growth of the cryptocurrency market. However, seeing the volatility of these drove many away. Hence, there arose a need for the stable coin.

The question still remains though, what actually is a stable coin, A stable coin pegs its cryptocurrency value to another asset, some of these being fiat currencies, commodities, and cryptocurrencies. The stable coins we will choose to focus on however are those that track the value of fiat currencies, including US dollars (USD) and Euros (EUR).

Which stable coins do we use?

USDC:

This is the world’s leading digital stable coin, and the coin Fivewest prefers over the others. USDC represents fiat, or government money, on the blockchain. It can be redeemed on a 1:1 basis for U.S. dollars, and is issued by regulated financial institutions and backed by fully reserved assets which are audited by accounting firm Grant Thornton LLP every month.

USDT:

The first stable coin as well as the most well-known stable coin is that issued by Tether. It is also directly pegged to the USD and is backed 100% by the reserves of Tether.

TUSD:

TUSD, a coin that is pegged 1:1 with the US dollar, is not as prone to massive fluctuations and can be easily and efficiently moved between countries. It originates with Trust Token in San Francisco.

This is an extra measure, put in place to make arbitrage safer, more efficient and as simple for the client as possible. Regardless of the simultaneous nature of the booking of these rates for arbitrage, we furthermore ensure that stable coins are utilised to ensure safe trading.

Published: 03 October 2022Arbitrage
Pierre Van Helden
CO-FOUNDER & MD

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