I decided to understand cryptocurrency arbitrage… so far only in theory, but it's already interesting 🤔

It turns out that making money on crypto arbitrage is quite simple in theory — buy a coin cheaper on one platform, sell it more expensive on another, and profit from the difference. But why do such differences even exist?

It's simple: different exchanges have different numbers of traders, prices update with delays, plus each country has its own laws and demand. Therefore, the same cryptocurrency can have different prices.

There are several types of arbitrage, and I haven't decided yet which one to choose 🧐

The first is inter-exchange. It's straightforward: buy on one major platform, transfer to another, and sell. For example, ETH is cheaper on one platform and more expensive on another.

The second is intra-exchange. Here, you catch the price difference between different trading pairs on the same exchange. Like, ETH/USDT is cheaper than when calculated through BTC. You convert back and forth and make a profit.

The third is triangular arbitrage. On one exchange, you exchange currency through several pairs in a row: USDT → BTC → ETH → back to USDT. If calculated correctly, you'll end up with more than you started with.

And the fourth is regional. You buy crypto on an international exchange in dollars, then sell via P2P in your local currency with a markup.

Where to start? You need accounts on several platforms (I already have some), then top up your balance with stablecoins like USDT or USDC — that's the easiest. Next, monitor prices through special sites or bots, calculate commissions and transfer speeds.

Here's a real example: BTC on one exchange is $96,000, on another $96,100. Buy cheaper, transfer (it's important to choose a fast network like TRC-20 or BSC), sell for more. Profit of $100 minus all fees.

But there are pitfalls that scare me. Fees can be so high that they eat up all the profit. While you're transferring crypto between exchanges, the price can change sharply. Some platforms have withdrawal limits. And there's also the risk of blocks due to regional restrictions.

In general, how to make money on crypto arbitrage is a real way, but you need to be very careful with calculations. Maybe I missed something? I’m interested to hear the opinions of experienced people ☺️