Decided to try something new in crypto… I’ve accumulated a lot of theory so far, and I want to figure it out. So, cryptocurrency arbitrage is basically a way to make money from the price difference of the same asset on different platforms. Buy cheaper here, sell higher there—and there’s already profit in your pocket. Sounds simple, but in practice it’s harder.

Why do these differences arise in the first place? It turns out that on each exchange there’s a different situation with buyers and sellers, plus prices update with a delay, and there are also different laws and demand in different countries. So it turns out that the same биток can cost different amounts.

There are several types of arbitrage, and I haven’t decided which one to choose yet. There’s inter-exchange arbitrage— the most obvious option, when you take an asset on one platform and dispose of it on another. For example, ETH on one exchange, then you transferred it and sold it on another. Intra-exchange arbitrage is when you play the price difference between trading pairs on the same platform—like ETH for USDT is cheaper than if you convert through BTC. There’s also a triangular option, when through several conversions you return to the original currency with a profit. And there’s regional arbitrage— you buy in one country, sell in another via P2P with a profit.

To get started, you need accounts on several exchanges (I already have), then top up your balance with stablecoins like USDT or USDC— it’s most convenient. Next, you monitor prices through special websites or bots, calculate commissions (this is important, otherwise you might end up in the red) and watch transfer speeds. Fast networks like TRC-20 or BSC help you not lose out on price changes during the transaction.

In practice, it looks like this: say, BTC on one platform is 96000 dollars, and on the other it’s 96100. You buy cheaper, transfer, and sell for more. Profit of a hundred bucks minus commissions. It sounds logical, but there are pitfalls here. Commissions can be so high that they wipe out all the profit. While you’re transferring crypto, the price can change in the other direction. On some exchanges there are withdrawal limits. And there’s a risk that your account could be blocked for suspicious activity.

So, is cryptocurrency arbitrage really a real way to make money, or am I missing something? I’d like to hear people’s opinions who have already tried it. Maybe there are things I’m not taking into account?