Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China

Research Article

The Arbitrage Strategy for Cryptocurrency: Principle and Feasibility Based on Blockchain Technology

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  • @INPROCEEDINGS{10.4108/eai.18-11-2022.2327128,
        author={Ming  Qin},
        title={The Arbitrage Strategy for Cryptocurrency: Principle and Feasibility Based on Blockchain Technology},
        proceedings={Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China},
        publisher={EAI},
        proceedings_a={ICEMME},
        year={2023},
        month={2},
        keywords={cryptocurrency; blockchain; arbitrage strategy; arbitrage chances},
        doi={10.4108/eai.18-11-2022.2327128}
    }
    
  • Ming Qin
    Year: 2023
    The Arbitrage Strategy for Cryptocurrency: Principle and Feasibility Based on Blockchain Technology
    ICEMME
    EAI
    DOI: 10.4108/eai.18-11-2022.2327128
Ming Qin1,*
  • 1: School of Architecture, Pratt Institute
*Contact email: mqin@pratt.edu

Abstract

Cryptocurrency is a tradable digital asset or digital form of money based on blockchain technology, which uses encryption to authenticate and protect transactions. Contemporarily, there are over a thousand different types of cryptocurrencies in the world, which is treated as the key to a fairer future economy. This research will illustrate the principles and process of arbitrage strategy for cryptocurrency. Specifically, the arbitrage possibilities by comparing and calculating the coefficient of relationships between prices and events will be investigated based on previous data. Primarily the original idea and the developments of cryptocurrency will be introduced, from the BTC to the thousand of cryptocurrencies. Subsequently, a deep study of different principles is carried out to find the possibilities of arbitrage and verify their feasibility. Once more cryptocurrencies occurred, meaning the risk and arbitrage chances will happen more often than before. The future study will focus more on the safe arbitrage possibilities between different countries. These results offer a guideline for a safer arbitrage possibility when the price change is related to the regulatory actions.