Trading on the cryptocurrency platform can bring you daily profits of more than $1,000. You can double your deposit in less than a week. Moreover, to obtain this income, it is not necessary to understand fundamental and technical analysis. Profit is available regardless of whether the price of Bitcoin and other coins rises or falls. How is this possible, you ask? The answer is simple: cryptocurrency arbitrage.
What is cryptocurrency arbitrage?
The easiest way to make money from digital assets is trading. Traders buy Bitcoin, Ethereum, and other cryptocurrencies and wait for their prices to rise. Is it possible to increase capital in this way? Yes. But with the same probability, you can lose everything. The rate of cryptocurrencies changes rapidly. No analyst is able to accurately predict the direction in which the chart will move.
As a result, beginners deposit money and spend time analyzing prices, indicators and forecasts. And then the cryptocurrency chart quickly moves in the opposite direction.
Therefore, cryptocurrency arbitrage is a less risky way to make money on trading platforms.
The price of tokens and coins varies on different platforms, and can sometimes reach tens of percent. For example, as of the end of 2023, one LTC coin on Binance.com costs $64.76. And at the same time on trustbity.com If exchanged, LTC could be sold for $70.20. The difference in the currency price is approximately 8.5%. This is exactly the amount a trader can get from a single arbitrage trade.
The classic scheme for making money from arbitrage
The trader finds two exchanges where the price of the crypto asset differs.
The currency or token is purchased on the platform at the lowest exchange rate.
The digital currency is transferred to the cryptocurrency exchange at the best rates.
The asset is sold on the spot market at a more favorable price for the USDT stablecoin
After that, the USDT is transferred to the first exchange and exchanged back for the cryptocurrency asset, after which you can repeat the circuit with a larger amount; This is how your profit grows
The main advantage of cryptocurrency arbitrage is that you do not need to conduct market analysis. It does not matter if the price of coins rises or falls. You can get profit from the difference in prices and not from the price dynamics.
You can estimate the approximate profit from each transaction. For example, if the exchange commission is 1%, and the difference in rates is 3%, each transaction brings you up to 2%.
Another advantage is the easy start of earning for beginners. You need about one day to put together a chart to make a profit.
Step by step instructions:
To make money through cryptocurrency trading, you need to:
Deposit funds to your personal account, you can buy USDT through the P2P trading section by choosing the appropriate payment method, for example payment with a bank card
If you already have cryptocurrency on the exchange, you can exchange it for LTC which you need to work through the spot market by searching and choosing the appropriate currency pair.
Look for an arbitrage opportunity; At the time of writing the current arbitrage method through LTC coin means that you need to go to the exchanges and check the prices, if the prices are different and on one exchange the price is lower and on the other it is higher, then the method is modern and working.
Transfer the LTC asset from the first exchange to the second.
Sell LTC on a second exchange while the price is right.
The profit received can be withdrawn back to USDT and to the first exchange, after which the cycle repeats.
For more comfortable and efficient work, you must pass KYC verification on the exchanges you work on. Usually after passing KYC verification, your limits increase significantly and you can work with a trading deposit of at least $100,000.