I decided to study a new topic for myself... so far mainly theoretically...

Cryptocurrency arbitrage is a method of making a profit based on buying digital assets at a lower price on one platform and selling them at a higher price on another, earning on the difference in exchange rates.

Why does this work?

The price of the same cryptocurrency can vary on different exchanges. The reasons for this are:

- Different ratio of buyers to sellers.

- Asynchronous update of quotes on exchanges.

- Different legislation and demand in different countries.

Arbitrage options ( have not yet been determined which one to choose 🤔🧐)

1. **Inter-exchange arbitrage**

- Buying on one exchange and selling on another.

- Example: Buying ETH on Gate, selling on another platform.

2. **Intra-exchange arbitrage**

- Using the difference in exchange rates between trading pairs within the same exchange.

- Example: ETH/USDT is cheaper than ETH/BTC. You make the conversion and earn a profit.

3. **Tripartite Arbitration**

- On one exchange: exchanging one currency for another through several pairs.

- Example: USDT → BTC → ETH → back to USDT.

4. **Regional Arbitration**

- Buying cryptocurrency on an exchange in one country, selling it in another through P2P.

- Example: Purchase on the international exchange ( in dollars ), sale in local currency with a markup.

Where to start?

1. **Register on multiple exchanges.** (This has already been done)

- Popular platforms: Gate and other major exchanges.

2. **Deposit funds.**

- It's more convenient to use stablecoins (USDT, USDC).

3. **Track prices.**

- Use specialized websites or bots for monitoring (, for example, CoinMarketCap ).

4. **Consider the fees.**

- Consider the fees for deposits, withdrawals, and exchanges. Otherwise, there is a risk of operating at a loss.

5. **Transaction speed.**

- Some blockchains process transactions slowly, which can lead to price changes.

- For quick transactions, in my opinion, it's better to use networks like TRC-20 or BSC.

An example of simple arbitrage (correct me if I'm wrong)

1. BTC is trading at $96,000 on Gate.

2. On another exchange, BTC is priced at $96,100.

3. Buy on Gate, transfer to the chosen exchange, sell.

Profit = $100 minus fees.

Potential difficulties, it seems to me

- **Commission Fees.** High fees can negate all profits.

- **Time delays.** The exchange rate may change during the transfer.

- **Withdrawal limits.** Some exchanges impose limits on amounts.

- **Risk of Blocking.** Regional restrictions or suspicions of fraudulent activities.

Arbitrage is a real opportunity to earn... or am I mistaken?

I would like to hear the opinion of experts ☺️