Answers to the Most Common Questions About Cryptocurrency Arbitrage

Introduction

Inter-exchange cryptocurrency arbitrage is perceived by most people as something very complex, which leads to limited competition in the vast cryptocurrency market, and thus more opportunities for earning.

We will focus on arbitraging your coins, not buying random coins solely for arbitrage purposes. Instead, we will work with what you already have. Perhaps you bought coins for the long term or received them as an investor in an IDO/ICO, or maybe you participated in a testnet and received project tokens as a reward.

The idea is to earn from projects in which you have confidence and recoup your investments through arbitrage. This way, you will be in a profit position in any market and will be able to steadily grow your capital.

Here's an example of such arbitrage with FTT, which I held.

The price on Binance was $2.

And the price on Binance was $1.688 at the same time. In one hour I gained 14% of everything I had invested in this coin, even though the price had dropped a lot from the one I had entered.

Arbitrage is not difficult at all, and you will be able to grasp it fairly quickly and start growing your capital.

The course is written in a simple manner so that even a beginner can learn interexchange cryptocurrency arbitrage and begin steadily increasing their capital without risks in any market.

What is crypto arbitrage

Every day, some coins rise or fall in price. In the cryptocurrency market, there are always coins with high volatility. The price of coins changes faster on certain exchanges than on others, allowing us to profit from the difference by instantly buying cheaper on one exchange and selling at a higher price on another. That's the essence of this method.

Anyone who has heard of this method knows that it guarantees earnings. It doesn't matter how the market is currently behaving, and we don't need to jump from one coin to another.

Cryptocurrency arbitrage works because the cryptocurrency market is sufficiently chaotic, with many different DEX/CEX exchanges operating independently of each other. You can check any exchange where a particular coin is traded right now and see that the price, even if slightly, varies. This is known as market inefficiency, and it is a normal state for cryptocurrencies. It is unlikely that anything will change in the next 10 years, so you have a good chance to build your capital through arbitrage while such an opportunity exists!

How much can you earn on arbitrage

Let me start by saying that you should expect long-term work when it comes to arbitrage. It's not a "money-making button," and it will require time and effort from you. So, don't expect to immediately achieve some super-high income.

Now, let's talk about the numbers so that you have a rough idea of what to expect.

Arbitrage can be divided into two different approaches: long-term and one-time.

For us, the foundation is long-term arbitrage. These pairings will be held for years, allowing you to consistently earn from them and increase your capital step by step. Using this method, you can recoup your investment in a coin within a period of up to 3 months, sometimes even within 1 day.

Here's how it works:

1. You bought a coin, let's say it's the TRX token, for $1000 and received 20,000 TRX tokens.

2. You found two exchanges for arbitrage. With each transaction, you earn around 0.5-1%.

3. Over the next two months, you arbitrage this token, gradually earning USDT. You can make profits of 1-10% per day, depending on your luck.

4. After two months, you still have the same 20,000 TRX tokens that you initially bought, but now you have an additional $1000 that you earned through arbitrage.

In these hypothetical two months, you have completely recouped your initial investment in purchasing the token, and now you can buy other coins and arbitrage them as well. Most importantly, you have recovered the cost of your education. By following this step-by-step approach, you will increase the number of such coins and pairings, and your income will be built upon that.

Let me tell you straight away - expect to work in the long term. Arbitrage is not a “money-making button,” and it will require time and effort from you, so don't expect to immediately achieve some super-high income.

Now, let's calculate the potential profit from continuous arbitrage.

Let's say you bought coins for $1000, and after 3 months, you already have $2000. You reinvested half of it and bought more coins. After another 3 months, you have $4000, and after another 3 months, you have $8000. By the end of the first year, starting from the initial investment, you would have $16,000. If you chose coins wisely for arbitrage, your entire portfolio could potentially grow by a factor of 10 in a couple of years, reaching $160,000.

In practice, you will naturally face different challenges, and the results will be different, both better and worse. All this "mathematics" is provided for illustrative purposes to demonstrate what long-term arbitrage can achieve. Personally, I've had situations where I recouped my investment in a coin within a couple of days, but there were also times when arbitrage didn't work out. There are also liquidity nuances, as not all exchanges allow constant trading with $1000 and so on.

Many of my students have strong success stories, where they achieved excellent results with a small investment. For example, one of my students found a pairing between PancakeSwap and Bybit using the SON token from the game Souni and successfully arbitrated it. Starting with $300, they made $2000 in capital within 2 weeks through arbitrage of this crypto game token. You can find their case study in the arbitrage channel. There are many such cases.

In the crypto market, you need to earn when the market provides an opportunity. Sometimes, there may be two weeks without many pairings, but on other days, each student can make a minimum of 50% capital through arbitrage.

The essence of the training is that we show our pairings: more than 50 case studies on how we earn on different coins and provide various tools. Your task is to understand them and apply them when the right moment comes to earn. Capital is certainly important, but the examples above and my personal experiences further demonstrate that there are situations where you can turn $200-300 into $1000 in 1-2 days.

Now, let's get into the numbers in more detail.

We aim to work with arbitrage opportunities with a profit margin of 0.5% per round. If your capital is $2000, you will earn around $5 per round (you will understand why it's not $10 later on). There can be many rounds in a day, depending on market volatility. Additionally, there are moments with arbitrage opportunities of 5-10% per round, especially with low-liquidity coins or during various events.

If there are market fluctuations, especially significant ones, we can profit from them. For example, the FTT coin unexpectedly surged by 100% on January 9, 2023. You can find that moment yourself and observe it on a minute timeframe.

On the minute chart you can see how much the graphs do not coincide, a large and obvious difference. At this time could be very profitable arbitrage, with a volume of $ 15k in 1 round (I have ftt not so much was)

How much can I start arbitrage with?

The minimum amount is around $10.

So, if you have a small capital, it's not a problem, and you can still make money with it. Of course, you shouldn't expect significant profits, but gradually, you will be able to increase your capital to a good level.

Moreover, having a small capital has an advantage that allows you to easily earn 100% in a month - you can work with low-liquidity coins. There are plenty of coins where you can earn 2-3%, but not more than $2 worth. And these small trades can be taken advantage of with a small capital.

In our training, you will see interesting case studies of our students who have been able to arbitrage and earn 30-50% per month and even multiply their investments by 2-5 in project growth, starting with minimal amounts.

But when it comes to the maximum amount, it becomes more challenging.

Everything depends on the trading volume of the coin, and the limit will be around 100 bitcoins (for Bitcoin itself). With such a capital, you can make around 20-30 bitcoins per month on a good Bitcoin pairing.

For different coins, it all depends on market capitalization and trading volumes, so the maximum amount will vary significantly. It can be as low as $200 in some cases, while in others, it can go up to $2,000,000.

Nevertheless, even for large capital, arbitrage can help recoup a portion of the investment and increase profits or compensate for downturns.