Possible Opportunities In Crypto Arbritrage Trading
A lot of people don’t know this trick but arbritrage trading is one of the low risk and easiest ways to make money in crypto. The first time I did arbitrage trading, it was a mistake, I bought bitcoin from a forex trading platform, made some trades, lost the trade, then wanted to withdraw the money back, so I converted the money back to bitcoin, sent it to one of my CEX wallet, withdrew the money and found out I had more money. This is including my loss in the Forex trade, after I subtracted my loss, the money I was left with was more than the money I deposited in.
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That was the first time I noticed arbitrage trading and what it was, but unfortunately, the next time I tried it, it wasn’t available in the platform anymore. Well, arbitrage trading is simply buying an asset some where and selling it at a higher price in another place. This is our everyday activity, lots of people abitrage, every business owner or a business man or woman buy from somewhere cheaper hoping to sell at a higher price somewhere else. So it’s not a crime, such is seen in the crypto space, assets are sold for different prices on different platforms.
Lots of people are making a lot of money buying crypto from one exchange and selling at a higher price in another exchange. This is one of the ways the CEO of FTX, Sam BankMan-Fried made some of his money from. But the secret is finding the perfect platforms to execute this, it’s not an everyday kind of opportunity. Most times the profit made from trades like this is usually very small, so using small capital might not give you the huge profit you are expecting. Sometimes if you invest $100 into arbitrage trading, you might get $2 profit after, that is about 2% profit, this means that you can use $1,000 and get $20 profit. Might seem small, but if you do that transaction 10 times a day, that is $200 profit made from the comfort of your home.
Opportunities can be found in DEX platforms and CEX wallets, such opportunities are not always there, you have to take your time to search for them, I have found some opportunities but the profit is quite low, for instance look at the image below.
If you look at the highlighted green area you will notice different prices of XRP across different exchanges, a big whale can easily make profit buying cheaper at one exchange and selling higher at a different exchange.
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