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With the introduction of cryptocurrencies, I feel there are now massively unexploited arbitrage opportunities and other types of plays across assets and markets
by sjtindell 5y ago
With the introduction of cryptocurrencies, I feel there are now massively unexploited arbitrage opportunities and other types of plays across assets and markets. If you are tricky and smart, you can use a traditional option or exotic derivative here, a cryptocurrency flash loan or stake/yield scheme there, move the money through these wrappers and lend it on that platform and voila, you’re making money hand over fist because nobody’s happened on that particular tangle of money yet. Dozens of legitimate traditional exchanges, dozens of cryptocurrency ones, hundreds or thousands of products and platforms.
- Traster 5y agoWell, plenty of traditional prop trading firms have moved into crypto. So I'm sure a lot of those routes are actually already being pursued to an extent. The biggest problem though is due to the relative lack of regulation, most traders are really going to struggle against the exchanges themselves. Flash crashes to trigger stop loss orders, front-running between exchanges, getting caught in pump and dump schemes etc. There are just so many dodgy activities that wouldn't last 10 seconds on a regulated exchange right now. And remember, you don't need to be smarter than average, the vast majority of traders are likely systematically losing money.