Introduction to Crypto Arbitrage Trading || 10% payout to Tron-fan-club.

Hello friends,welcome to my blog. Am super happy am making another interesting post in this commuinty. I want to believe you have been learning from my previous post. In today's post I will be talking about Crypto Arbitrage Trading which I consider as another viable means of earning in this space. Kindly join me on this ride...

What is Crypto Arbitrage Trading?

Crypto arbitrage can be defined as a trading style or strategy that focuses on purchasing an asset on one exchange and then selling that same asset on another exchange in other to make profit off the asset. Now the logic behind this kind of trading strategy is that before deciding to purchase an asset on an exchange in order to sell in another you must have noticed a price difference on that asset in both exchange.

For example SOL might be $300 on exchange A and $310 in exchange B. This is already a good opportunity to carry out your arbitrage because if it's done successfully, you would make a profit of $10 which is the difference in price on both exchange. It is important to mention that there are factors to consider when trying out arbitrage trading. It look pretty cool and easy in terms of profit but in the real sense it's not. When you begin to take into consideration factors like fee, timing and the likes then you will know you've got to be a little smart when doing this. Timing is very important when it comes to this type of trading so you don't miss out on your envisaged profit.

Factors to be considered

• Timing

You have to be very fast when attempting arbitrage. The market is really volatile and unstable. The profit you spotted and want to take advantage of might just slip away if you ain't fast. You have to understand how long it takes to send your asset from one exchange to another,some asset takes longer time before getting to destination exchange and this can in a way reduce your chances.

• Fee

This is another interesting fact you should take note of. This is very tricky and that is why you need to really count your cost before attempting arbitrage trading. Fees have a way of eating the profit you've spotted. Fees like witdrawal fee and transaction fee from one exchange to the other might end up taking the profit. So you have to properly count the cost.

• Exchange

You need to be very calculative in that you know the exchange you're dealing with to a very remarkable extent. Don't deal with an exchange that you don't know much about,you might end up sending your asset there in a hope to sell and then get caught up in some unfavourable terms and condition. However you could make a whooping amount of profit if you are dealing with a very good exchange with less complication.

• Asset

Be picky with your asset. Avoid assets like Bitcoin if you're a newbie because of volatility and it takes longer time for transaction to be confirmed most times,go for new listings that are credible and doesn't really have high demand on certain exchange and take advantage of these asset. You could earn cool money from these asset even with a low level of risk.

• profit

Profit here are not with the aim to make you a billionaire or trillionaire overnight. Don't forget it just a strategy that help you take advantage of slight difference in price of an asset across various exchange. You could earn $10 to $100 or even more depending on how smart dedicated and persistent you are.

Conclusion

Now you know about arbitrage trading which could be another source of income to you if you know how it works. I will encourage you to do more research on this trading strategy even as I prepare the second part of this lecture. Thanks for reading through.

Regards:
@lhorgic♥️