Arbitrage 101
You're here because you indicated interest to get stated with Crypto Arbitraging
In this very video, I'll be showing you the...5 MAJOR STEPS TOWARDS RUNNING A PROFITABLE CRYPTOCURRENCY ARBITRAGE TRADING:But before then...What is ARBITRAGE?
Arbitrage simply explained is the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset's listed price.It majorly exploits the short-lived variations in the price of identical or similar financial instruments in different markets or different forms.
In other words, it simply means taking advantage of the price of an asset in two or more markets.Simply put, an investor buys a cryptocurrency on one exchange and quickly sells it on another exchange for a higher price and then proceeds to rinse and repeat the same process over and over to multiply their earnings.Is Arbitrage Legal?
Arbitrage is NOT only legal but also encouraged as it largely contributes to market efficiency.Yes, Arbitrage Affects the Markets Movement But How Exactly?
Simple! In the course of trading and making profit, arbitrage trade enhances the efficiency of the financial markets. This is exactly how they do that: As they buy and sell, the price difference between identical or similar assets gets narrowed. This makes it possible for the lower-priced assets to get higher bids while higher-priced assets are sold off.Is Crypto Arbitrage Very Profitable?
The answer is capital YES! Crypto arbitrage can be very profitable but given the price differences in exchanges, the profit usually comes in tiny bits making it very necessary for you to repeat the trading activities over and over to enable you to make something significant.Arbitrage trading strategy is beautiful when you have a large sum of money to trade with. That way your profit will be worthwhile.For instance, you go to OKX and purchase Ethereum worth N100,000 and sell it on Binance for 105,000. Your profit is N5,000. If you go ahead to repeat that process for 9 extra times, you would have made N50,000 in a single day.Can One Lose Money Running Arbitrage?
Running Crypto arbitrage usually comes with a low-level risk to the investor because each asset is bought and sold simultaneously. Investors also have to see the opportunities first before they can even decide to go ahead and buy a given asset or even sell.There are features that makes it possible for your profit not to get swallowed up by transaction charges when running arbitrage; but you need to learn and understand how it all works.One major problem you'll have here would be to have your entire profit swallowed up in expenses while moving from market X to market Y!But, I'll teach you how to completely eliminate that possibility.
Arbitrage opportunities can exist between two or more centralised exchanges, the centralised exchanges; or even between a centralised and a decentralised exchange It can also exist between different markets in the same exchange.For example, an arbitrage opportunity between a Peer-to-Peer market (P2P) and a Spot Market.The bottom line here is that the crypto arbitrage system of trading is time-bound. Therefore you must pay attention!Step 1:
Buy USDT with Naira in the P2P Market.Step 2:
Swap the USDT for BTC or ETH using the zero-fee "Convert" feature.Step 3:
Sell the converted BTC or ETH for Naira.Step 4:
Take your profit.Step 5:
Rinse and Repeat the entire process.
Join OKX
This is the largest Crypto Exchange Platform in Europe and Asia. It happens to be one of the 3 major Exchanges where Arbitrage opportunities exists.
Join BINANCE
This is the largest Crypto exchange in the world in terms of daily trading volume of cryptocurrencies and one of the major places that Arbitrage opportunities exists.
Join KUCOIN
This is one of the largest cryptocurrency exchanges offering the ability to buy, sell, and trade cryptocurrencies. It's one of the most powerful platforms where Arbitrage opportunities exists.