I decided to delve deeper into crypto earnings and came across an interesting topic. What is cryptocurrency arbitrage? It turns out it’s not such a complicated scheme—you buy the asset cheaper on one platform, sell it for more on another, and the difference is already in your pocket. Sounds simple, but the devil is in the details.

So why do these price gaps even happen? It’s quite simple—different exchanges have different numbers of traders, the quote update speed isn’t synchronized, and there are also regional differences in demand and local laws. The price of the same token can swing by several percent.

There are several types of arbitrage, and I haven’t yet decided which one to start with. Inter-exchange arbitrage is the most obvious option: you buy on one major platform, send it to another, and sell. Then there’s intra-exchange arbitrage, when you catch the difference between trading pairs directly on the same platform—for example, ETH is cheaper in the pair with USDT than in the pair with another asset. Triangular arbitrage is a bit more complicated—you convert the currency through several pairs in a chain, return to the original asset with a profit. And there’s also regional arbitrage—when you sell crypto in local currency via P2P with a markup.

Where should you start? You’ll need accounts on several major exchanges and a balance in stablecoins (USDT, USDC are the most convenient). Next, you need price monitoring—there are special services and bots. But the main thing is to correctly calculate commissions, otherwise all your earnings will go to fees. And transfer speed is critical: while the crypto is moving from one network to another, the price can turn around.

A real-life example: BTC costs $96,000 on one platform and $96,100 on another. Buy at the lower price, transfer, sell at the higher. Minus commissions—that’s your profit. It sounds like free money, but there are pitfalls.

Commissions can completely wipe out your profit, especially with micro-differences. Delays during transfers—by the time you complete them, the price can move in the wrong direction. Withdrawal limits on some platforms are really strict. Plus, there’s always a risk of being flagged for suspicious activity. What is cryptocurrency arbitrage in theory—great, but in practice you need speed and composure.

To be honest, I’m still looking for the optimal strategy. Have any of you tried it already? What pitfalls did I miss? I’d be grateful for advice and real experience!