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Crypto arbitrage: make money without delving into stock analysis | by Arbitrage Trade | coinmonks

$90,000,000,000. This number is the approximate volume of transactions with the largest cryptocurrencies per day.

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, in order 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.

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.

Can you predict, which way will the chart move, up or down?

As a result, beginners deposit money and spend time analyzing quotes, indicators, forecasts. And then the cryptocurrency chart rapidly moves in the opposite direction.

Therefore, there is a less risky way to make money on trading platforms: crypto arbitrage.

The price of tokens and coins varies on different platforms, sometimes up to tens of percent. For example, as of November 27, 2022, 1 BTC was worth $16,790 on Binance. At the same time, on the bitix exchange, Bitcoin could be sold for $17,892. The rate difference was almost 5%. This is how much a trader could get from one arbitrage deal.

Cryptocurrencies price difference on Binance and bitix. You could get up to 5% from one arbitrage deal.

The classic scheme for earning money on arbitrage:

  1. The trader finds 2 exchanges where the price of crypto assets is different.
  2. The coin or token is purchased on the platform with the lowest exchange rate.
  3. The digital currency is transferred to the crypto exchange with the best quotes.
  4. The asset is sold at a more favorable price.

The main advantage of crypto arbitrage: you do not need to make market analysis. It doesn’t matter if the price of coins rises or falls. You get profit from the difference in rates, 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 1 day to work out a scheme for making a profit.

To make money on crypto arbitrage, you need to:

  1. Create accounts on two or more exchanges, such as bitix and Phemex.
  2. Deposit money into your personal account.
  3. Find an arbitrage opportunity, which means that you need to wait until there is a difference in the buying rate of a coin or token on one exchange and the selling price of this asset on another.
  4. Buy Bitcoin or other cryptocurrency on the platform where the price is lower.
  5. Transfer an asset from one exchange to another.
  6. Sell ​​it there while the exchange rate is favorable.
  7. The resulting profit can be withdrawn or left on the account, increasing your capital.


Binance: Buy — $16812.81
bitix: Sell — $17892.52

Profit per BTC traded: $1079.71

Today, hundreds of cryptocurrency platforms are available. But not all of them are suitable for crypto arbitrage. When choosing an exchange, you need to consider the following criteria:

  • Reliability. The platform must be stable and secure.
  • Favorable exchange rate. It makes no sense to create accounts on crypto platforms that have approximately the same quotes.
  • No withdrawal fee. The lower it is, the greater benefit gets the investor.

On some platforms such as bitixyou can withdraw coins and tokens with 0 fee.

As of 2022, we can recommend the following platforms for beginners:

  • bitix. It is beneficial for a huge amount of arbitrage opportunities. The difference in quotes with other platforms can exceed 5%. In addition, the exchange has loyal conditions for beginners, you can quickly and easily pass verification. Also, for many cryptocurrencies, there is a zero withdrawal fee.
  • Binance. The largest crypto platform. Binance has a convenient and fast terminal, but a rather strict rules of account verification. In addition, there is a limit on the minimum withdrawal amount of coins.
  • Huobi. The platform allows you to withdraw up to 0.1 BTC per day without verification. In addition, there are quite low fees for transferring coins and tokens.

What is more profitable, arbitrage or spot trading?

Trading can bring more money at a time. But there is a risk of losing everything due to incorrect market analysis. The rate of cryptocurrencies is changing rapidly, it can be difficult for beginners to understand which way the chart will go. Therefore, arbitrage is the best way to make money for beginners.

Is it legal to engage in crypto arbitrage?

Yes. On such large and reliable exchanges like Binance or bitixinvestors have never had misunderstandings because of this way of earning.

How much can you earn per day with cryptocurrency arbitrage?

It all depends on the time spent and the initial capital. In theory, an investor can double the deposit in just a few days. In this case, by investing $100 at the beginning, you can turn them into $5000 or more in a month (if the investor does not withdraw profits).

Are there any risks in crypto arbitrage?

Yes, if an investor spends a lot of time transferring assets between platforms, the rate may change to a disadvantage. Therefore, transactions must be carried out quickly. In addition, it is undesirable to execute transactions if you see that quotes are changing too quickly (cryptocurrency is rapidly becoming more expensive or cheaper). But such events occur infrequently.

I want to try this method, how should I start?

  1. Create accounts on bitix (invite code: f3k3010) and Binance (invite code: T214RL).
  2. Make a deposit.
  3. Find a trading pair with a difference in rates and buy a currency where it is cheaper.
  4. Transfer coins to the second exchange, and sell there.

New to trading? Try crypto trading bots or copy trading

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