What Role Does API Sync Play in Crypto Arbitrage Bot Development ?
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The synchronization of the API becomes possible due to which an arbitrage bot has access to timely and accurate prices from different exchanges, that is the main pre condition for using any arbitrage strategy. Due to the nature of arbitrage being available only during a short period of time when the prices are different and then converge, even minor inconsistencies in time of the data receipt may make a potentially profitable deal into the losing one upon execution.
Ensuring the synchronization is not a matter of simple connection to several APIs. Each exchange has its own set of rate limits, response times and data format. That is why it is necessary to standardize price feeds and take into account latency differences, while still making sure that one lagging connection does not impact the final result. The order book depth should be taken into account too, as the difference in the price does not mean anything if it is impossible to trade with such a price.
That is the main area of the engineering efforts of a Crypto Arbitrage Trading Bot Development Company or crypto arbitrage bot development company, as the correctness of the synchronization defines the availability of the detected deals.
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