How to make money from crypto

Understand

The underlying value of cryptocurrencies is normally nothing other than it's potential to gain widespread trust and acceptance as a societal currency. In that case, it could be profitable to buy the currency now, assuming that the eventual stable value of the cryptocurrency is higher than what we can buy it for today. This entials the risk that if everyone loses trust in the currency or governments regulate cryptocurrencies to the point that they lose their potential, it's likely that the value would take and investors could lose a lot of money.

Arbitrage

Most of the popular cryptocurrencies correlate with each other, probably because they have a similar potential of gaining widespread acceptance, and the same risk of becoming worthless. Events such as a government election, where one party has a technology advisor that advocated cryptocurrencies and where the other party is skeptical of them, can cause all different cryptocurrency coins to move up or down together.

This provides a potential to earn money, because if you understand how the cryptocurrencies move together (i.e. Bitcoin normally moves first, then Litecoin), you can watch the movement of bitcoin and buy Litecoin before it's price increases.

Correlations

The obvious correlations (e.g. bitcoin and ethereum) normally get a lot of attention and the competetion to make a profit from them is high. Therefore to find an opportunity that a small team or company can use, it would be smart to find less 'popular' cryptocurrencies that correlate.

Finding which cryptocurrencies correlate is a tedious task because historical data is expensive and sometimes comes from different sources (e.g. comparing a cryptocurrency with a stock market instrument). Parsing, formatting, setting time intervals, etc is a lot of work. Arbitrades is designed to reduce the barrier to entry for detecting opportunities in exchanges by showing you how different cryptocurrencies or other instruments correlate. This information can be a useful lead into arbitrage opportunities.