Potential Opportunities In Cryptocurrency Arbitrage Trading

It's a little-known fact that one of the simplest and lowest risk ways to make money in cryptocurrency is through arbitrage trading. The first time I engaged in arbitrage trading, I made the mistake of purchasing bitcoin from a forex trading platform, engaging in some trades, losing the trade, and subsequently wishing to withdraw the money. I converted the funds back to bitcoin, sent them to one of my CEX wallets, withdrew the money, and discovered I had more funds. Included in this is my Forex trading loss; nonetheless, after deducting it, the amount I had left over exceeded the amount I had initially placed.

I initially learned about arbitrage trading at that point, but when I tried it again the next time, the site no longer supported it. Arbitrage trading is just the act of purchasing an asset somewhere and then selling it at a higher price somewhere else. This is a common behavior among many people; every business owner or experienced trader purchases something at a lower cost with the hopes of reselling it for a higher cost somewhere. Since assets are sold for various prices on various platforms, it is not illegal. This is common in the cryptocurrency space.

Many people make significant profits by buying cryptocurrencies on one exchange, then reselling them at a profit on another. I made a fortune last year when CBN forbade financial institutions from dealing with cryptocurrencies. I purchase from the local cryptocurrency exchange (Quidax) and sell on Binance. However, the pricing has been balanced when Quidax implemented P2P. Since this is a rare opportunity, the challenge now is identifying the best platforms to carry it out. Utilizing little capital might not provide the significant profit you were expecting for since the gain from deals like this is often relatively small.

Occasionally, if you invest $100 in arbitrage trading, you might make $1 in profit. This is equivalent to about 1% profit, so you could use $1,000 and make $10 profit. It may seem insignificant, but if you carry out that transaction ten times every day, you will have generated $100 profit while relaxing in your house.

These opportunities can frequently be found in DEX platforms and CEX wallets, but they are not always prevalent, so you must take your time to look for them. I have discovered some opportunities where the asset's price in DEX is incredibly low, but the problem is that the liquidity is always minimal, making it challenging to purchase, transfer to CEX, and then sell to make a profit.