- Home
- Success stories
- Blockchain
- Web
- Cryptocurrency
- Fintech
- Trading
- Arbitrage
Arbitrage bot operating between South African and foreign crypto exchanges and enabling users to generate profit from cryptocurrency price discrepancies
Project goals
- 1
Develop a sophisticated trading bot with an intuitive UI that would operate between local and foreign exchanges and spot arbitrage spreads
- 2
Enable users from South Africa to profit from differences in BTC prices between markets and carry out risk-free transactions
- 3
Ensure support for BTC, USD, and ZAR
Work done
- Thoroughly carried out research phase
- Robust, custom-made trading platform with multi-user support and ability to conduct trades between the EU and South African markets
- Web platform helping users track and manage arbitrage opportunities
- Well-defined proprietary logic
- Profitable rates search algorithm
- Convenient admin panel
- Bot integration with the proposed exchanges and currency pairs
- Advanced system that quickly creates matching orders needed for the arbitrage operation without any restrictions imposed on the number of trades a user makes per day
Business opportunity
- Crypto trading has been on the rise in South Africa and shrewd investors are now making millions of rand from it.This phenomenon can be attributed to the fact that demand for BTC in South Africa exceeds supply and its price has been 3-4% higher compared to other international markets.
- As a result, it is much more profitable to buy Bitcoin low on a foreign exchange and sell it high on the local one.In cases like this, a reliable and fully-fledged crypto arbitrage trading system is needed to help traders quickly spot arbitrage spreads and receive maximum benefit from price discrepancies.
$25.8 mln
the amount of trading volume generated by South Africa in Q1 2021
*The country has been ranked as one of the top P2P Bitcoin trading nations on the African continent
150,000
user accounts and 50+ cryptocurrencies registered in VALR
*The most popular crypto exchange in South Africa
$145 mln
daily crypto asset trading values in South Africa*
*as of January 2021
Solution
Our team of quants and blockchain developers mapped out a comprehensive arbitrage strategy and developed a top tool with a clear UI, multi-user support, and full compliance with South African laws and regulations.
The solution allows users to seize arbitrage opportunities in the volatile crypto market, capitalize on BTC price discrepancies, and grow investments in the local currency (rands) via cross-border crypto arbitrage. Crucially, it provides trading services to users in a timely manner without restrictions imposed on the number of trades conducted per day.
Technologies used:
Details
Supported exchanges
To get started with arbitrage trading, the user is required to integrate the bot with the crypto exchanges’ APIs.The developed bot operates between Binance (foreign) and VALR (local) exchanges, which were chosen based on the following factors:
- The capabilities of the created trading bot
- The trading volume of the exchanges
- KYC & AML regulations
Support for each of these exchanges includes:
- Integration with the exchange via its API / WebSocket connection
- Placement and execution of trading orders by the bot
- Transfer of coins/fiat money from one exchange to another
- Opportunity to view the orders and trading history of the authenticated exchange account
Regulatory aspects
In South Africa, all foreign investments are regulated by the government. That is why when registering in the system, the user is obliged to follow a link where they will be asked to fill in a special form and submit it to Currency Partners — a financial services provider licensed by the FSCA and the SARB.The organization will help attend to regulatory requirements, deal with the tax clearance certificates, and initiate the payment to Binance on behalf of the client using the API and the client’s Binance reference (account number).
Risk management
The parameters for crypto trading can be set in the admin panel. It’s possible to specify the desired profit percentage of the arbitrage operation as well as the minimum trading amount. Once the given parameters have been met, the crypto trading bot will be able to execute the transaction and the user will get the profit.
Got an idea? Let’s work together
How it works
The most extraordinary thing about the solution is that it is perfectly capable of instantaneously detecting profit signals according to the percentage value of the potential profit and automatically conducting a transaction on behalf of the user.
Here is what the process looks like:
1
The user registers in the system
To register in the system, the user has to open a foreign exchange bank account in their own name, configure Binance’s and VALR’s APIs, and set up a withdrawal account in VALR to which they will withdraw their funds. The bot is now ready to work.
2
The user logs in to the system
To log in, the user is required to enter their email and password and undergo two-factor authentication via Google Authenticator (if it is enabled).
3
The bot checks if there is a minimum trading amount of USD in the foreign exchange account
The minimum sum needed to execute a trade is 250,000 ZAR (in USD equivalent), though this can be changed in the admin panel.
4
The bot gets down to checking and comparing order books from both Binance and the local exchange and searching for arbitrage opportunities
The sophisticated backend mechanisms allow the bot to quickly check orders from the two exchanges against each other for potential profitability.
5
Once an arbitrage opportunity has been spotted, the bot sells USD and buys BTC on Binance
The system creates the matching orders required for the arbitrage operation. Afterwards, the bot sends the commission (25% from the arbitrage transaction profit) to the customer’s commission wallet address. The rest of the BTC goes to the user’s VALR account.
6
The bot sells BTC and buys ZAR on VALR
Once the purchase has been made, the bot sends ZAR to the foreign exchange bank account (only the amounts of ZAR that are part of the arbitrage transaction).
7
The bot either continues performing orders or stops
Upon successful completion of the transaction, the user can top up their Binance balance to repeat the bot flow. Or, they may choose not to do so — hence, the bot won’t be able to perform another transaction.
Thanks to the exquisite algorithms that lie at its core, the bot manages to spot arbitrage opportunities in the blink of an eye and carry out a trade at lightning speed.
The user can just sit back, relax, and generate profit with a couple of taps on the screen.
Project features
- Automated crypto arbitrage trading
- Custom-made strategy
- Blazing-fast performance speed
- Well-thought-out strategy of transaction distribution among users
- Arbitrage value stats chart which shows the best arbitrage opportunity per day
- Absence of any limitations on the number of trades to be conducted by the bot
- Two-factor authentication via Google Authenticator as an additional layer of security
- Attractive and consistent UI
- 24/7/365 access
- Detailed and relevant information about the bot’s functionality with pop-up notifications and FAQ blockchain-section
- Services IT R&D RESEARCH & DEVELOPMENT In this ever-evolving tech realm, don't just follow trends — set them.Capitalize on innovation, launch ground-breaking products, and forge new business models for maximum ROI. IT Consulting CONSULTING From complex enterprise tech transformation to the innovative project launch, our team supports businesses at different stages of their projects.Come along, we’ll help you get an edge and play big on the global market. Custom Software Development CUSTOM ENGINEERING Let us have your back in a project of any scale. From user-centric mobile apps to full-blown cross-platform enterprise ecosystems — we’ll bring your concept to life, exactly as you think it should look and work. Mobile App Development MOBILE APP DEVELOPMENT Entrust us with your end-to-end mobile project — from ideation and engineering to app launch and integration.With business growth in mind, we’ll help you hit the market with a slick iOS, Android, or cross-platform app. Mobile App Development iOS App Development Android App Development Cross-Platform App DevelopmentWeb Development WEB DEVELOPMENT Whether you need an app from the ground up or require a legacy system to be updated, we can jump in at any stage.From an accessibility roadmap to post-launch support, we’ll help your business stay strictly legal and competitive. Web Development Web Accessibility Audit Web Accessibility Consulting Accessible Web Development and DesignDevSecOps DevSecOps Ensure your software's integrity and efficiency from conception to compliance. UI/UX Design UI/UX DESIGN Give us the pleasure of adding our secret sauce to your app.We’ll create beautiful screens at the front while breaking the limits of what’s behind them to help your app get to beyond-plausible business achievements. QA & Software Testing QA & SOFTWARE TESTING Engage us for integrated quality assurance services, and our experts will advise on QA strategy and optimize software testing costs.We’ll balance manual testing with QA automation to ensure consistent performance for all possible use cases and devices.
- Technologies Blockchain BLOCKCHAIN DEVELOPMENT Blockchain Development Blockchain Consulting NFT Development STO Development ZK Rollup Solutions Enterprise Blockchain Development Smart Contracts Development Smart Contract Audit DApp Development Cryptocurrency Exchange DevelopmentData Science DATA SCIENCE Transforming data into growth strategies is our specialty.Leverage our expertise to unlock the potential of your big data and diverse digital assets, driving business growth. Big Data Consulting Data Analytics Business Intelligence Data VisualizationMachine Learning and AI ARTIFICIAL INTELLIGENCE Machine Learning Predictive Analytics Computer Vision Custom AI Development Chatbot DevelopmentAR & VR AUGMENTED VIRTUAL REALITY Immerse your customers into a universe of unimaginable and give them truly novel experiences with AR, VR, and Mixed Reality.We'll help define a proper business concept and find a balance between legacy workflows and next-gen customer engagement solutions. Metaverse METAVERSE We create tools, assets, and ecosystems to seamlessly merge real-life and digital worlds within your Metaverse projects.It could be a multi-layer virtual space or a unique artwork item. Either way, we’ll deliver it — ready and working. Connected Devices (IoT) INTERNET-OF-THINGS Aching to handle digital and physical asset management? We build load-resistant IoT services, both enterprise and consumer.Hit us with IoT consulting, app development, back-end engineering, or existing infrastructure revamping – we’ll nail it down.
- Industries FinTech & Banking FINTECH & BANKING As traditional finance goes digital, we are committed to building efficient ecosystems and better engagementThink of customized FinTech solutions with tamper-proof transactions and storage, progress transparency and automation — and we’ll make them see the light of day. Retail & eCommerce RETAIL & ECOMMERCE Whether you market B2B or B2C, commerce tech trends are all about value-driven purposes, global sustainability, hybrid shopping journeys, and extra-resiliency.Let your clients know that there’s more to your brand than meets the eye by creating unique customer experiences in all your stores. Supply Chain & Logistics SUPPLY CHAIN & LOGISTICS To make things easier for all vendors, we deliver apps for route and cost optimization, vehicle operational support, and better dispatch time efficiency.With focus is sustainability, resilience, transparency, and immutability, let’s get your transformation going. Healthcare HEALTHCARE Custom healthcare software solutions are aimed at helping you ensure accurate diagnosis, better patient engagement, and positive healthcare outcomes.Whether you require a patient management solution, practice management software, EMR/EHR system, or ML-enabled diagnostics – we’ve got you covered. Real Estate REAL ESTATE Keep up with digital innovation trends by accelerating enterprise transformation and scaling, leveraging data and orchestrating workflows.Whether you manage and sell commercial facilities or invest third-party capital, our integrated solutions help you make the most of it. Oil & Gas OIL & GAS With mobility and digital technologies standing to change the game and define leadership, our mission is to get you digital-first.Resolve operational and conceptual issues by introducing clear tech vision, feasible architectures, and flexible software to take business extension off limits.
- Solutions Know-Your-Transaction KYT platform ensures financial integrity, compliance, and proactive risk management. Control your operations seamlessly with real-time API integration. DocFlow Secure workflows, decentralized storage, and total document control. Streamline your processes with our business document management system. Arbitrage Bot Alternate your yield channels, maximize investment efficiency, customize trading strategies, and execute profitable low-risk transactions. CryptoAPI Connect your dApps to blockchains commission-free. No need for heavy database upload, infrastructure updates, or a dedicated engineering team. OTC Hawk Redefine wealth and portfolio management at your firm, outpacing your competitors. Make crypto/fiat trading easy and profitable for your clients.
- Success stories Blockchain Government & Enterprise Energy & Utilities Financial Services Supply Chain Healthcare Retail & eCommerce See all projects
- Company About us Team News Careers Scholarship CSR Contacts
- Blog