Getting Started with Centralized Exchanges for Futures Arbitrage

Getting ready for work: CEX-exchanges

In the previous parts of the training, we got acquainted with the futures screener, as well as discussed its setup. In addition, we managed to discuss the key principles that underlie various arbitrage strategies.

In this part of the training, we will talk about how to prepare for work on centralized exchanges, as well as discuss ways to protect your account and learn the basic interface of the exchange for our work.

REGISTRATION ON THE EXCHANGE

Your path in futures arbitrage should start with registering accounts among our exchange partners:

By going to the section supported exchanges, register on all available platforms. This will help you:

• Avoid phishing sites – registration only through trusted links.

• Reduce trading commissions – constant discounts, bonus vouchers, and VIP rates will help save more than one thousand dollars.

• Get bonus USDT for spot and futures trading.

• Participate in exclusive Airdrop programs – actions are available only to new users.

• Use special Earn conditions – beneficial offers for earning.

• Reduce the reaction time to the appearance of spreads – timely registration on exchanges will allow you to act quickly on current pairs.

Such simple steps – more opportunities for earning and saving!

For example, the exchange Bybit will delight you with a welcome bonus for registration:

And by replenishing your deposit account, you will receive USDT, which can cover your commission costs on the first arbitrage trades:

PASSING KYC AND SECURING THE ACCOUNT

It is also important to come up with a reliable password to protect your account during registration. A simple and easily guessable password makes your account vulnerable to hacking.

• Example of a bad password: Qw123456789

• Example of a good password: G7$kL9#bF2!vQd

RECOMMENDATION: save the exchange password in a safe place. For example, on paper in several copies. This approach ensures safe storage and eliminates the loss of important data in case of hacking or device failure (phone or computer).

After registering on the exchange, you need to go through the KYC procedure.

KYC (know your customer) – this is a procedure where you are asked to remotely confirm your identity by providing a passport or other document.

It is needed for the following reasons:

• Security – protection from scammers and money laundering.

• Access to the full capabilities of the exchange – without KYC, you may have restrictions on withdrawing funds or access to certain functions, including futures trading.

• Increasing limits – after passing KYC, you will be able to trade and withdraw more funds.

• Access to bonuses and promotions – many exchanges provide additional benefits only to users who have passed verification.

Thus, by passing KYC, you get more opportunities.

For example, on the exchange Kucoin, such a procedure can be completed in the profile section → profile verification:

This procedure is standard for all centralized exchanges. It usually does not take much time.

In rare cases, the check may exceed the deadlines, but after passing it, all trading restrictions will be available to you:

After registration and passing KYC, you need to secure the exchange account in the security section:

Going to which you need to enable two-factor authentication (2FA).

Two-factor authentication (2FA) – this is an additional level of security for your account on the exchange. In addition to the password, you enter a confirmation code that comes to your phone or a special application.

Why do you need 2FA:

• Protection from hacking – even if someone finds out your password, they won't be able to log in without the code.

• Security of your funds – an additional barrier for scammers.

• Reducing the risk of unauthorized access – complicates access to your account for attackers.

Most exchanges support Google authentication using the special Google Authenticator app.

Google Authenticator – this is an application for generating one-time codes that are updated every 30 seconds. This code will need to be entered each time you log in.

It is important to follow the following instructions to safely use the application and store the exchange keys:

• Step 1: download and install the application (it is available on all devices).

• Step 2: write down or create a backup copy of the two-factor authentication key from the Google Authenticator app account.

• Step 3: scan the QR code or copy the secret key in Google Authenticator and insert it into the application.

When we talk about step 3, we mean that you need to save a backup copy of this key on paper:

Saving the 2FA code (backup code or secret key) on paper is necessary to restore access to your account in case you lose your phone, delete the application, or it stops working.

This code allows you to re-enable two-factor authentication on a new device.

NOTE: without a saved code, you risk losing access to your account, as you will not be able to receive one-time codes for login.

Most exchanges also support an additional account security mechanism in the form of an email anti-phishing code in the security settings.

Email Anti-phishing Code – this is your personal code that is added to each email from the exchange, confirming that the email is from the exchange, not from scammers.

Let's summarize:

1. Reliable password – this is your protection from hacking. Use complex passwords and store them in a safe place.

2. KYC procedure – opens you full access to the exchange's functions, increasing limits and providing access to futures trading.

3. 2FA – an additional level of account security. Be sure to save the backup key to restore access.

4. Additional security elements, such as anti-phishing code, reduce the risk of unauthorized access through phishing links from scammers.