I've been interested for a long time in how people make money from exchange rate differences... and now I've decided to understand crypto arbitrage. It turns out, it's a pretty interesting scheme.

The essence is simple: the same coin has different prices on different platforms. You buy where it's cheaper and sell where it's more expensive. That's the whole idea. But why do these differences even occur? It all comes down to each exchange having its own demand and supply, plus prices update with a delay, and different countries have different conditions and demand for crypto.

There are several types of arbitrage. The first is inter-exchange, where you just buy a coin on one platform and sell it on another. The second is intra-exchange, where you play with the difference between trading pairs on the same exchange. For example, ETH priced in USDT might be cheaper than when calculated through BTC. The third is triangular arbitrage, where you make several consecutive exchanges in a chain: USDT to BTC, then to ETH, then back to USDT. There's also regional arbitrage in crypto — buying through one exchange and selling via P2P in another country, profiting from currency differences.

To get started, you need accounts on multiple exchanges — that's obvious. It's easiest to fund your account with stablecoins like USDT or USDC. Then, constantly monitor prices using specialized services. But the main thing is not to forget about fees! You need to account for deposit, withdrawal, and exchange fees. Otherwise, you risk ending up in the red. Speed is also important — while your funds are transferring from one exchange to another, the price can jump. Fast networks like TRC-20 or BSC help solve this.

Let me try an example: suppose BTC costs $96,000 on one major exchange and $96,100 on another. You buy at the first price, transfer it there, and sell at the second. Profit is $100 minus all expenses. Sounds easy, but there are pitfalls.

Fees can eat up all your earnings. Transfer delays — and the price might have changed by then. Some exchanges have withdrawal limits. Plus, there's the risk of account blocks due to regional restrictions. All of this needs to be considered.

So, crypto arbitrage is a real way to make money, but it's not as simple as it might seem at first glance. I’d like to hear the opinions of those who have already tried. Maybe I missed something?