Lesson 10 - How to start work with the Screener and Scanner | The main risks in arbitrage through withdrawal

Main Risks of Withdrawal Arbitrage

1. Suspension of Deposits/Withdrawals

Sometimes, exchanges may suddenly suspend the ability to deposit or withdraw certain tokens. This can happen for various reasons, such as technical maintenance or the introduction of new regulatory restrictions. For instance, if Binance suddenly suspends withdrawals for XRP, it can disrupt your arbitrage strategy, potentially causing you to miss out on making profit.

Often, the screener may display a significant spread, but the ability to deposit or withdraw that particular coin may be closed. You should check for this before making a purchase to avoid a situation where you buy a token but cannot transfer it, leading to a loss.

Such situations can arise for various reasons, including technical maintenance or security breaches. Many different situations can lead to exchanges closing withdrawals. 

Check if deposits/withdrawals are open on both exchanges before buying a token.

2. Transfer Time