No one talks about Arbitrage.
Looks like Binance wants to open the Pandora's box.
- 50x on holding $BOME ?
- No, you can achieve that through arbitrage in 1 day.
Time to reveal some secrets about arbitrage 🧵👇
Arbitrage in crypto entails price differentials across various exchanges, whether centralized or decentralized.
The strategy revolves around purchasing assets at lower prices and selling them at higher prices, exploiting market inefficiencies.
Greater market volatility typically presents more arbitrage opportunities.
Plenty of new tokens are being launched, listed, and offered in presales.
This presents an opportunity to generate profits seemingly out of thin air, with just a simple strategy that I'll share.
DEX preparation
Deposit native tokens to popular networks, such as:
• Solana
• Ethereum
• Base
• Arbitrum
• Opimism
• BSC
Typically, there are three types of arbitrage:
• DEX ⇆ CEX
• DEX ⇆ DEX
• CEX ⇆ CEX
To understand this more clearly, here are examples:
Listing Announcements.
When CEXs announce listings, coins tend to growth.
The growth ranging from 10% to 200%.
$BALLZ | @WolfWifBallz
13 Mar - MEXC Announcement | +160%
If you're monitoring announcements and have the opportunity to buy when an announcement is posted, you can quickly earn money.
Once you know when trading starts, you must be prepared.
• Check deposit networks.
• Check withdrawal networks.
• Open tabs with DEXes (if the asset is trading on different networks).
• Wait for the start of trading.
The market is volatile, and exchanges can't always add liquidity in exact proportion to match the price on other exchanges.
This creates an opportunity to buy at a lower price when trading starts.
The buying pressure during the trading start on exchange1 may be stronger than on exchange2.
This can lead to a price difference in a moment.
We must use this moments to generate profits.
Don't forget to check whether withdrawals/deposits are opened!
Due to high volatility right after trading starts,
there are many opportunities to buy the dips or sell the highs.
That are great strategies for finding and profiting from arbitrage.
Dip diving involves tracking prices with scripts, sending alerts, and automation where available.
If you'd like me to write about it, share your thoughts in the comments.
