- According to Ripple, XRP is perfect for arbitrage trading as it allows assets to move between exchanges quickly and cost-effectively.
- Both exchanges and traders can benefit from the technical advantages of XRP.
Many traders try to anticipate price movements and price trends by reading charts, and set their trades based on this. However, the so-called arbitrage trading, in which price differences between different exchanges are used to make a profit, is much simpler. Ripple explains in a new blog post why the digital asset XRP is perfectly suited for arbitrage trading.
XRP: Perfectly suited for arbitrage trading models
The transaction fees of Bitcoin or Ethereum are already significantly higher than those of XRP under normal circumstances. With high network utilization, this margin increases many times over. During the last crypto-crash on March 12, 2020, also known as “Black Thursday”, the average transaction fees skyrocketed to five times the normal amount in the network of BTC and ETH.
An analysis by Xpring has shown that users of exchanges switch to the digital asset XRP for value transfer during this time. The following chart illustrates these developments.
With near real-time transaction processing and the advanced distribution of XRP to more than 130 exchanges, the digital asset is