I recently started to dive deeper into cryptocurrency arbitrage, and here’s what I’ve realized — it’s not just theory, but a fully workable scheme if you calculate everything correctly. The essence is simple: the same coin costs differently on different platforms. Buy where it’s cheaper, sell where it’s more expensive, and profit from the spread.

Why do these differences even appear? It’s simple — different trading volumes, delays in updating quotes, regional demand. One exchange might have more buyers, another fewer, so prices diverge.

What I’ve studied about types of cryptocurrency arbitrage — there are several. The most straightforward inter-exchange arbitrage: buy on one platform, transfer to another, sell. But there’s also intra-exchange arbitrage, when you catch the difference between pairs on the same exchange. For example, ETH/USDT is cheaper than converting through another pair. Or triangular — making several exchanges in a row through different pairs to return to the original currency with a profit.

There’s also a regional option — buy on an international exchange, then sell locally via P2P considering the rate and demand in a specific country. This is a longer scheme, but sometimes the profit is higher.

Where to start? First, you need accounts on several platforms. I use a few major ones to catch spreads. Then I top up my balance with stablecoins — USDT or USDC are the most convenient. Next, you need to constantly monitor prices; there are special websites and bots for this.

But here’s the catch — fees. This is critical. If you don’t account for deposit, withdrawal, and exchange fees, you can end up in the red. I’ve seen examples where the spread was $100, but fees ate everything and even more. Plus, the speed of transferring funds between exchanges — while you’re transferring, the price can change, and the whole calculation can fall apart. That’s why fast networks like TRC-20 or BSC are good.

A simple example: BTC on one platform costs $96,000, on another $96,100. Bought at 96K, transferred, sold at 96.1K. Theoretically, $100 profit. But subtract fees and the risk of price change during the transaction — and the profit can be quite different.

Personal observations: cryptocurrency arbitrage works, but it’s not a golden goose. High fees, delays, withdrawal limits, the risk of account blocks — all of this is real. Some exchanges limit withdrawal amounts, especially with large volumes. Plus, regional restrictions can interfere.

A question for those who are experienced — is it really worth the time? Or are there pitfalls I’ve missed?