Earning through cryptocurrency P2P arbitrage in 2023
Earning through P2P cryptocurrency arbitrage in 2023: methods and profitability in the world of digital assets. How to maximize your profits?
Cryptocurrency arbitrage is a way to increase your assets. The arbitrage process itself is very simple. You choose a cryptocurrency, check its prices on various exchanges, and compare them. Then you buy it on the exchange where the token's price is lower and sell it on the one where the coin is trading at a higher price.
We offer access to 75 centralized (CEX) and 25 decentralized (DEX) exchanges across 40 blockchains, and we continually add new exchanges, providing you with a wide range of options for arbitrage.
Is arbitrage still relevant in 2023?
Arbitrage is now practiced by many, but on major exchanges such as Binance, Kraken, Coinbase Exchange, and others, it can be challenging to find orders at the top of the user list. Users also frequently employ automated bots for trading, making arbitrage more complex. However, these automated bots use API access to the exchanges, which is risky because you are essentially giving someone else the “keys to your apartment” in the hope that they will buy you new furniture or perform repairs. Unfortunately, often, the owners of such “apartments” come back to find either their place empty, all the old furniture gone with no new replacements, or, even worse, the apartment is no longer theirs.
Cryptocurrency arbitrage can be profitable and relevant if you use reliable exchanges and research information before arbitrage, including coins, withdrawal availability, and supporting software. Currently, the main arbitrage happens on DEX exchanges, where large spreads or pairs often occur, and this is where some P2P arbitrageurs have shifted.
Spreads or pairs refer to information on which exchange the price of a coin is lower and on which exchange the price of the same coin is higher. You can make a profit by buying an asset on one exchange and selling the same asset on another.
Types and strategies for earning through arbitrage
There are several strategies:
Inter-exchange arbitrage
This is a standard and popular form of arbitrage. The more exchanges you use, the higher the chance of finding a profitable price difference.
For example:
Intra-exchange arbitrage
This is a way to profit from differences in cryptocurrency rates within a single exchange. At least three related trading pairs are used to increase the likelihood of making a profit.
For example, let's assume BTC is priced at $100:
- Buy 1 BTC on the Binance exchange
- Exchange 1 BTC for 10 REEF
- Sell 10 REEF for $200
This form of arbitrage can be very risky, especially when arbitraging during market downturns.
Matrix arbitrage
This type of arbitrage involves both inter-exchange and intra-exchange elements.
For example, let's assume BTC is priced at $100:
- Buy 1 BTC on the Binance exchange
- Exchange 1 BTC for 10 REEF
- Exchange 10 REEF for 50 APT
- Sell 50 APT on OKX
However, it can be challenging to find and execute such pairs before the spread disappears, and you may incur significant fees if you do not plan ahead. If you discover such pairs, we recommend using our cryptocurrency arbitrage calculator to calculate your potential earnings on both CEX and DEX exchanges.
CEX + DEX Exchange Arbitrage
As mentioned earlier, arbitrage with DEX is currently the most lucrative option available in the market. Significant spreads are created in such exchange pairs, and they tend to persist much longer than on two CEX exchanges.
Blockchain-to-Blockchain Arbitrage
This involves buying an asset on one blockchain and selling it on another. For example, a trader can buy bitcoins on the Bitcoin (BTC) blockchain and sell them on the Ethereum (ETH) blockchain. This method can yield substantial profits.
Tools for earning through cryptocurrency arbitrage:
Traders use various tools for earning, and ArbitrageScanner offers the best tools for cryptocurrency arbitrage.
Currently, our ecosystem includes ten products:
01 SCANNER
Supports over 75 CEX and 25 DEX exchanges across more than 40 blockchains.
The bot is entirely manual. It doesn't have access to your exchange API keys. In other words, you are the only one who has access to your finance, and all notifications with links are sent to your Telegram chat or website.
02 SCREENER
The bot searches for pairs between exchanges based on your specified settings (such as volume threshold, preferred exchanges, and desired profit percentage) and sends you notifications when there's a spread. It supports 15 CEX, 200+ DEX across 12 blockchains.
As an example, CRV was compromised and our scanner was sending the difference, which showed an almost 6-fold difference with CEX exchanges, allowing for a profitable opportunity within a 15-minute window. You don't need to hold tokens in advance.
03 WEB SCREENER
It searches for pairs across exchanges based on specified settings. For the convenience of our clients, we have implemented filters: including deposit and withdrawal network filters, input and output network status filters (open or closed), "buy exchange" and "sell exchange" filters, filters for selecting withdrawal and deposit networks, and filters for choosing the status of the deposit and withdrawal networks. The WEB scanner supports 15 CEX, 200+ DEX across 12 blockchains.
For example, with XRP, which doubled in value within 1 hour, most of our clients did not hold it. There was a sharp increase and a spread of 10-15% in a circle between major exchanges. Our scanner showed this, and every client could make a transaction and profit from it.
04 CRYPTO WALLET ANALYSIS (New)
We provide the most comprehensive tool in the market for analyzing blockchain data and wallets across various blockchains. Through our service, you can analyze any wallet, obtaining data such as earnings, Winrate, pnl (profit and loss). You can analyze each coin, track when it was bought and sold by the selected wallet, add them to collections, and monitor their actions through push notifications.
For instance, one of our clients discovered a wallet using the search for similar wallets feature. The owner of this wallet acquired XRP just an hour before Ripple announced its legal victory. After analyzing through our service, the client identified that this wallet consistently buys coins before significant increases and successfully earns profits. The client added this wallet to their watchlist and earned over $5000 in two weeks by monitoring all its operations.
05 MASS WALLET SEARCH (New)
This convenient tool allows you to search for wallets that are profiting in the crypto market using various filters. You can filter wallets based on different parameters, such as coins that have shown growth recently, specific blockchains, or transaction volume, among others.
After receiving a list of wallets, you have the option to remove unnecessary ones, saving the remaining wallets in a collection. Additionally, you can initiate a mass analysis to understand the common characteristics of these wallets and identify overall trends. This tool provides a simple and effective way to track and analyze wallets, helping identify interesting investment opportunities in the cryptocurrency market.
06 SEARCHING FOR SIMILAR WALLETS (New)
Thanks to this tool, using AI, you can find similar wallets from your collection. For instance, through a mass search for wallets, you identified a list of wallets that invested in major coins before their rise. Now, you want to find wallets similar to these.
By adding them to our tool, AI provides a list of similar wallets based on dozens of characteristics. This approach offers a simple way to identify wallets with insider information or track the strategies of top traders. Currently, we apply 272 criteria for automatic searching of similar wallets that match your criteria.
07 MASS WALLET ANALYSIS (closed Beta)
Using this tool, you can analyze wallets and discover new similar wallets based on various characteristics. You'll receive a visual representation of the data in the form of charts. You can delete unnecessary wallets or save the ones of interest to a collection. Additionally, you can submit selected wallets that meet specific criteria for a search for similar ones using artificial intelligence.
This tool provides a quick and easy way to identify interesting wallets for further analysis. With the help of 272 criteria, artificial intelligence assists you in finding wallets that closely align with your preferences.
08 BLOCKCHAIN ANOMALY DETECTION (closed Alpha)
Using the anomaly detection feature can save a lot of time in wallet analysis. This algorithm automatically analyzes all wallet transactions and identifies anomalous behavior specific to that wallet.
For example, suppose you were analyzing the wallet of a DEX trader who primarily traded in ETH, constituting 99% of all their transactions. If this wallet unexpectedly engages in a transaction with a new token, uses a bridge to another network, buys NFTs, and so on, such transactions are considered anomalous for this wallet, and we will show you precisely these anomalous transactions.
09 TELEGRAM SCANNER LIVE
The perfect tool for tracking the right keywords in real-time. Imagine you hold a coin that will soon be in the news, and you need to understand whether it will be good or bad news, as it will determine where the market will go, and you need to make a quick decision to buy or sell.
Just set up the Live scanner for the keywords and chats you need and start getting information before official publications in the media and make money on insights!
10 TELEGRAM SCANNER HISTORY
You can effectively analyze real people's opinions about any crypto project, find potential clients, search for various earning schemes mentioned in chats or channels, and make money from this information.
This scanner works with chat history and can analyze over a million messages in just a few minutes and find all the necessary information for you. Then it provides the results in an Excel table so that you can process the information in a convenient environment.
Which exchanges to use?
There are currently numerous cryptocurrency exchanges emerging, which means that arbitrage opportunities are virtually limitless. To determine whether a particular exchange is trustworthy or a scam, you need to study a large number of sources, including who is behind the project, the technology it is based on, and so on.
Therefore, we have prepared a list of cryptocurrency exchanges for you that you can use without worrying about your finances. Most popular exchanges and the top 100 coins listed on them likely have market makers. Therefore, we recommend choosing established projects and coins that are in the top 250.
However, some shitcoins also make it into the top 250, so be cautious when investing in any coin. Often, such coins have a large spread, but the availability of withdrawals may not always be guaranteed.
Always check the availability of coin withdrawals, only then can you profit from arbitrage.
How much can you earn?
It all depends on your capital, free time, and the arbitrage opportunities you find. Beginners in P2P arbitrage with small capital are unlikely to earn a lot. However, if you engage in inter-exchange arbitrage or CEX+DEX arbitrage or between blockchains, even with a small capital, you can significantly increase your assets.
Our clients have shared cases where they earned $20,000 or more on a single pair.
Let's take the ARKHAM case when it was listed on Binance.
Binance announced the listing of a new coin. According to the listing conditions, the price of the coin in the first 5 minutes should not exceed x10 of the launchpad price. Investors who learned about this news first could buy the coin for $0.5 each and sell it for $0.8 each within 2 minutes, making a profit of 60%.
A client in our private chat shared this news so that everyone could profit. Many of our clients saw the spread thanks to our Screener and earned from arbitrage. Several clients also put ARKHAM in our Telegram Scanner and caught this news in the chat. After that, they left the coin in the scanner and saw a large spread, making a similar profit.
This case demonstrates the importance of cryptocurrency arbitrage tools and how much you can earn with their correct use.
Advantages and disadvantages
Speaking of P2P arbitrage, there are several pros and cons to this method of earning. Among the advantages are: payment security and exchange guarantees, a wide variety of payment methods, very low fees or no fees at all on some exchanges (especially for market makers), and a relatively low financial entry threshold for P2P.
Among the disadvantages are: the possibility of encountering scam exchanges or fraudsters, P2P and bank card blocking, which is often considered illegal in many countries, and a well-established system and a large initial capital are required for significant earnings.
So, as mentioned in this article, the best option is inter-exchange arbitrage, with far fewer risks. You can earn even without a large initial capital or increase it in a short period with inter-exchange arbitrage. Situations often arise in inter-exchange arbitrage where you can definitely make a profit.
Conclusions
At first glance, cryptocurrency arbitrage may seem quite complex, but there are services that can help you earn from it. We provide the most necessary and best tools for earning through cryptocurrency arbitrage. Many reputable media outlets rank us as the top service, and users from around the world trust us. You can see for yourself how our service works by visiting our test channel. You can also request a trial day from our support to confirm this firsthand. Earn with cryptocurrency arbitrage together with us.