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2023-10-02 14:54:47
Crypto arbitrage: make money without delving into stock analysis
Trading on a crypto platform can bring you more than $1,000 of daily profit. You can double the deposit in less than a week. Moreover, to receive this income, it is not necessary to understand fundamental and technical analysis. Profit is available regardless of whether the rate of Bitcoin and other coins rises or falls. How is this possible, you ask? The answer is simple: crypto arbitrage.
What is a cryptocurrency arbitrage?
The easiest way to make money on digital assets is trading. Traders buy Bitcoin, Ethereum and other cryptocurrencies and wait for their price to rise. Is it possible to increase capital in this way? Yes. But with the same probability, you can lose everything. The rate of cryptocurrencies is changing rapidly. No analyst is able to accurately predict in which direction the chart will move.
As a result, beginners deposit money and spend time analyzing quotes, indicators, and forecasts. And then the cryptocurrency chart rapidly moves in the opposite direction.
Therefore, crypto arbitrage is a less risky way to make money on trading platforms.
The price of tokens and coins varies on different platforms, sometimes up to tens of percent. For example, as of the end of 2023, 1 LTC on Binance.com costs $64.76. At the same time, on the Trustbity.com exchange, LTC can be sold for $70.20. The difference in the coin rate is almost 8.5%. This is exactly how much a trader can get from one arbitrage transaction.
Classic scheme for making money on arbitrage
The trader finds 2 exchanges where the price of crypto assets is different.
The coin or token is purchased on the platform with the lowest exchange rate.
The digital currency is transferred to the crypto exchange with the best quotes.
The asset is sold on the spot market at a more favorable price for the USDT stablecoin
After this, USDT is transferred to the first exchange and exchanged back to the crypto asset, after which you can repeat the circle with a higher amount; this is how your profit grows
Expected benefits
The main advantage of crypto arbitrage is that you do not need to make a market analysis. It doesn’t matter if the price of coins rises or falls. You get profit from the difference in rates and not from the dynamics of quotes.
You can estimate the approximate profit from each transaction. For example, if the exchange commission is 1%, the difference in rates is 3%, then each transaction brings you up to 2%.
Another advantage is the easy start of earning for beginners. You need approximately one day to work out a scheme for making a profit.
Step-by-step instruction:
To make money on crypto arbitrage, you need:
Create accounts on two or more exchanges such as Binance.com and Trustbity.com.
Deposit money into your personal account, you can purchase USDT through the P2P trading section by choosing a suitable payment method, for example, paying with a bank card
If you already have cryptocurrency on the exchange, you can exchange it for the LTC you need to operate through the spot market by finding and selecting a suitable currency pair.
Find an arbitrage opportunity; at the time of writing the current method of arbitration through the LTC coin, means that you need to go to the exchanges and check the rates, if the rates are different and on one exchange, the price is lower and on the other it is higher, then the method is current and works.
Transfer an LTC asset from the first exchange to the second.
Sell LTC on a second exchange while the rate is favorable.
The profit received can be withdrawn back to USDT and to the first exchange, after which the circle repeats.
For the most comfortable and efficient work, you must pass KYC verification on the exchanges with which you work. Usually after passing KYC verification, your limits increase significantly and you can work with a trading deposit at least $100,000
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