Published in · 13 min read · May 7, 2018
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Lately, I have been hearing a lot of people talking about “arbitrage” and how they are doing it, or planning to do it, or how they have made amazing profits arbitraging cryptocurrencies with “bots” they have programmed using instructions in YouTube.
I have even seen ICOs that have raised capital for said activity, w/o mention of key aspects of arbitrage, and with teams lacking the right domain expertise.
I have heard this from programmers in Silicon Valley, Hong Kong, and New York as well. Knowing a thing or two about arbitrage, high yield trading, and financial engineering, I decided to write my first Medium article, to illustrate what arbitrage is, its different flavors, and what I see are some of the opportunities in cryptocurrencies out there. My knowledge in the area is both academic (MBA, Finance; Engineer, Programmer) and practical: I used to structure proprietary arbitrage CDO deals for Deutsche Bank in New York and London, with the largest having a total size of about $3bn USD; and had a similar role in Lehman Brothers (check out this video piece that the Wall Street Journal where I am interviewed in reference of Lehman Brother’s bankruptcy in 2008).
Long story short? Yes, there were plenty of opportunities in cryptocurrency “deterministic arbitrage” until at least late 2017…
