IDEAS home Printed from https://ideas.repec.org/a/aes/infoec/v22y2018i2p35-42.html
   My bibliography  Save this article

Arbitrage Trading Systems for Cryptocurrencies. Design Principles and Server Architecture

Author

Listed:
  • Cristian PAUNA

Abstract

When dot.com has become a quaint idea, when electronic shops have lost the mass attention, while classical and margin trading has become obsolete, something new is coming: cryptocur-rencies. Hundreds of virtual coins have been invented for a single reason: the profit. The high price volatility of these new markets and the fact that the virtual coins price is not regulated by a central bank or a single exchange, gives us opportunities for arbitrage trading. The existence of important price differences makes possible the profit when an automated system buy cheaper and sell more expensive in the same time. This paper will present the general principles under-pinning the implementation of arbitrage trading software for virtual coins market. The very large number of cryptocurrencies and exchanges fundamentally change the server architecture of the trading software. The distributed price data in hundreds of sources and the technical dif-ferences of each of these data providers make all the things difficult to be implemented in a sin-gle application. The low-latency order calculation needed for the fast delivery before a signifi-cant price change, in the presence of thousands of price quotes coming from hundreds of dis-tributed servers makes everything special.

Suggested Citation

  • Cristian PAUNA, 2018. "Arbitrage Trading Systems for Cryptocurrencies. Design Principles and Server Architecture," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 22(2), pages 35-42.
    • Handle: RePEc:aes:infoec:v:22:y:2018:i:2:p:35-42
    as

    Download full text from publisher

    File URL: http://revistaie.ase.ro/content/86/04%20-%20pauna.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fan Fang & Carmine Ventre & Michail Basios & Leslie Kanthan & Lingbo Li & David Martinez-Regoband & Fan Wu, 2020. "Cryptocurrency Trading: A Comprehensive Survey," Papers 2003.11352, arXiv.org, revised Jan 2022.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aes:infoec:v:22:y:2018:i:2:p:35-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Paul Pocatilu (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.