Risk-Free Cryptocurrency Arbitrage with ArbitrageScanner: Maximize Your Earnings!

We received many questions during the webinar and in the closed chat for clients about which arbitrage strategy to use.

Today we'll look at a risk-free method. It's suitable for those with initial capital starting from $500 USD

You choose coins that you would buy for the long term, and that's very important. Don't choose obscure coins that always have a large spread. With this strategy, you need to study the project very carefully.

To arbitrage these coins, you don't need to make a withdrawal. So, the classic method works.

You buy a coin on one exchange and sell it on another.

To sell an asset instantly, you need to have a balance on both exchanges.

1. Let's take Hedera as an example:
2. Let's say you bought 1000 coins at a rate of $1 per coin.
3. We study the exchanges and find a link on Coinbase and KuCoin.
4. We deposit 100 Hedera on Coinbase and ~1000 USDT on KuCoin.
5. You put a coin in our scanner and simply monitor the spreads.
6. The bot sends a link that informs you that on Coinbase, Hedera is traded for 1.01 USDT, and on KuCoin for 1.00 USDT.
7. We definitely look at the fees; let's assume here it's 0.
8. Be sure to observe the volumes of orders in the order book.
9. Someone is ready to buy on Coinbase at a rate of 1.01 for $2,000.
10. KuCoin is selling at a rate of 1.00 for $8,000, and the price has been stable for a long time.
11. The order that needs to be closed less first is the main rule.

We sell 1000 Hedera on Coinbase for $1010, we buy 1000 Hedera on KuCoin for $1000. Profit +$10 without using a withdrawal.

It's also important to mention that you shouldn't trade more than 25% of the orders in the order book.

This is how risk-free arbitrage works: you don't need to make a withdrawal, and the trade takes 3 to 5 seconds, so the price won't drop. It's important to understand that you are buying for the long term, even if the withdrawal is closed, you have verified that the token is not a scam, there may be a situation where it starts to fall, as for example happened with LUNA, but even with a closed withdrawal you can do arbitrage and earn on the fall of the token. Therefore, be sure to take into account the investment risks and invest in proven projects.

1. Then, either we wait until arbitrage appears in the opposite direction, or we transfer tokens and USDT between the exchanges if you notice that the spread remains in that direction.

That's the whole risk-free arbitrage strategy. Read about other strategies on our blog.

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