A trading method known as "crypto arbitrage" includes taking advantage of price variations for the same cryptocurrency on various cryptocurrency exchanges. The fundamental principle of arbitrage is to take advantage of price differences by buying low on one exchange and selling high on another. The key secret to making big profits with crypto arbitrage is finding the exchanges with prices differences to exploit. You need to always make your calculations right before starting any transaction taking into consideration transaction and withdrawal fees.
Here is how to make money with cryptocurrency arbitrage:
1. Finding Price Differences : The first thing to do is to search for cryptocurrencies that are trading at various rates on various exchanges. These price discrepancies may be brought on by changes in supply and demand, trading volume, exchange-specific elements, or delays in the broadcast of information. When a price discrepancy is discovered, you make a purchase the cryptocurrency on the exchange where it is offered at the lower price. To do this, you must place a buy order.
2. Transfer to Higher-Priced Exchange to Sell: Next thing is to tranfer the bitcoin or any cryptocurrency you are working with to the exchange where it is trading at a higher price after buying it. The cryptocurrency may need to be taken out of the first exchange and deposited into the second in order to do this. You then sell the cryptocurrency at the higher price after depositing it on the higher-priced exchange. To do this, you must place a sell order.
3. Enjoy the Profit: After deducting any transaction costs, withdrawal costs, and transfer time delays, you should make money from the price differential between the two exchanges.
PRO TIP:
There are various websites and and apps that also allow you to buy cryptocurrency directly with your local currencies. You will have to identify such genuine sites and compare the different rates they offer. The rates keep changing so you'll have to check regularly so that when the opportunity presents itself, you make good use of it by buying from where the rates are low and selling at where the rates are high.
Some genuine sites I have personally used in Ghana to buy and sell BTC and other cryptocurrencies include; Mybitstore, BitAfrika, Eccurency4u
Another Arbitrage is gives good money is currency arbitrage which I will talk about more in another post
DISCLAIMER: Be very careful when dealing with cryptocurrency. There are a lot of scammers that will present themselves with good rates to lure you into getting you ripped. Always do a lot of research about a site/app to ensure its genuinety before using it.
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