Bitcoin Arbitrage Bot — Architecture

Automated system that buys Bitcoin on centralized exchanges at spot price and sells peer-to-peer at a premium. Fully autonomous from order execution to on-chain escrow release.

Core Orchestration

⚙️

Trading Engine

Central orchestrator — 30s polling loop

Offer lifecycle management (create, fund, match, release)
Auto-accept trade requests with PGP-encrypted payment data
Contract monitoring with PSBT signing
Auto premium reduction via live PATCH (no cancel/refund)
Auto-refund: sign & broadcast cancelled escrow PSBTs every 10min
Auto buy-escrow: every 10min, CHF/EUR/USD, 5.5% fixed premium, no Revolut
Daily summary, low balance alerts, profit tracking
Multi-source spot price with fallback
Thread-safe concurrent access (engine + Telegram threads)

Backend External Integrations

🏦

Exchange Connector

CHF/EUR/USD spot market buy + withdrawal

Market buy with viqc (volume in quote currency)
Dual fill detection: QueryOrders + balance change fallback
BTC withdrawal to whitelisted hot wallet address
Trade history and ledger queries
HMAC-SHA512 signed API authentication

🤝

P2P Platform

Peer-to-peer marketplace integration

Secp256k1 authentication with auto-refresh (~50min)
Sell offers with per-method SHA256 payment hashes
Trade request detection via v069 (v1 often empty)
AES symmetric key exchange + PGP encryption
Live premium PATCH on active offers
Market scanner: competitor + buyer demand analysis

💸

Wise Forwarder

Auto-forward incoming EUR/CHF to exchange

Balance polling every 30s via Wise API
Auto-create transfer drafts (EUR → Kraken, CHF → bank)
Telegram notification with Wise app deep link
One-tap confirmation in Wise app (PSD2 compliant)

Backend Bitcoin Protocol

📡

Hot Wallet & TX Builder

Raw Bitcoin TX construction & UTXO management

BIP32/39/84 HD keys: m/84'/0'/0'/0/i
Native SegWit P2WPKH → P2WSH
UTXO selection with dynamic fee estimation
BIP143 witness signing (ECDSA)
Dust handling and change outputs
Mempool broadcast via public API

✍️

Escrow & PSBT Signing

Multisig escrow release & key derivation

Per-offer escrow keys: m/84'/0'/0'/{id}'
Parse and sign PSBTv0 (2-of-2 multisig)
BIP143 sighash (ALL + SINGLE|ANYONECANPAY)
Auto-detect key from witness script inspection
TX finalization and GroupHug batch support
Legacy vs current derivation path fallback

Backend Data & Pricing

📊

Premium Management

Dynamic pricing + auto-reduction

Market-based premium calculation (undercut strategy)
Auto-reduction: -0.5% every 24h without match
Live PATCH on funded offers (no on-chain refund needed)
Floor enforcement (4%) and ceiling cap (10%)
Telegram notification on each reduction

🗄️

Trade Database

SQLite with WAL mode

Trade logging with full fee breakdown
Buy data preservation across escrow lifecycle
Event tracking (lifecycle audit trail)
Daily/monthly profit analytics
Platform breakdown reports

Frontend User Interfaces

💬

Telegram Bot

Remote control & monitoring

/buy_escrow — Full cycle: CHF/EUR/USD buy or BTC withdraw → Offer → Escrow
/market — Competitive analysis + premium recommendation
/status /balance /offers /contracts — Monitoring
/cancel /pause /resume — Control with inline keyboards
Background UTXO polling for escrow funding
Persistent pending fundings (survives restart)
Telegram notifications for every auto buy-escrow (offer ID, premium, sats, BTC cost)

📈

Web Dashboard

Flask — HTTPS + Basic Auth

Real-time status overview
Trade history with filtering
Balance and P&L charts
Market premium landscape

Bitcoin Arbitrage Trading Bot

Payment Methods

Trade Lifecycle

Security Model