Why Does ETH Cost 9% More on One Exchange?
43sThe surprising price discrepancy and the promise of easy profit hook viewers immediately.
▶ Play ClipAI Summary
The video demonstrates a practical cryptocurrency arbitrage strategy, specifically focusing on Ethereum (ETH) price differences between two exchanges. The host walks through a step-by-step process of buying ETH via P2P, transferring it to an exchange with a higher price, swapping to USDT, and withdrawing back, showcasing a real profit of $460 from a $5,000 initial investment.
Chapters
[00:02]
The Arbitrage Opportunity
The same cryptocurrency (Ether) can have different prices on different exchanges simultaneously, sometimes with noticeable differences. The video records a 9% price difference at the time of recording.
[00:15]
Theoretical vs. Practical
While the theoretical profit from buying cheap and selling expensive seems obvious, real-world factors like commissions, transfer speed, and price changes can eat into profits. The video aims to test the strategy in practice.
[01:02]
Setting Up the Trade
The host buys ETH via P2P on a major exchange (e.g., Binance, Bybit) or through services like Best Change. Starting budget is $5,000, which is about 2.6 ETH.
[01:43]
Executing the Arbitrage
After checking the exchange rate on the target exchange (Map Swap), the host deposits ETH, swaps it to USDT, and withdraws USDT back to the main wallet. The difference is just over $180 per coin.
[02:56]
Realized Profit
After the swap, the balance increases by approximately $480 in one pass. After withdrawing USDT back to Bybit, the final profit is about $460 after commissions.
[03:55]
Risk and Limitations
The host advises not to move more than $15,000 per day through one account to avoid additional verification requests, which can delay the process.
The video successfully demonstrates that cryptocurrency arbitrage can be profitable in practice, with a $460 profit from a single transaction. However, it emphasizes the importance of considering fees, transfer times, and potential verification hurdles.
Mentioned in this Video
Tutorial Checklist
1
01:02
Buy Ether via P2P on a major exchange (e.g., Binance, Bybit) or through services like Best Change.
3
01:58
Register an account on the exchanger and check the exchange rate in the Exchange tab. Select Ether and USDT.
4
02:12
Click on deposit in the wallet, select Ether, leave the network as default, and copy the deposit address.
5
02:26
Return to the wallet, click withdraw, paste the copied address, set the same network, enter the amount, and confirm with 2FA.
6
02:40
Wait for the deposit to arrive, go to the Exchange tab, select Ether, enter the full amount, and click Swap.
7
03:11
Withdraw USDT back to the main wallet by selecting USDT and the ERC20 network, then copy the deposit address from your exchange.
8
03:24
Paste the address on Map Swap, select the available amount, and confirm the withdrawal. Wait for network confirmation.
Study Flashcards (5)
What is the main strategy demonstrated in the video?
easy
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What is the main strategy demonstrated in the video?
easy
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Buying Ether on one exchange where it's cheaper and selling it on another where it's more expensive, then withdrawing the profit.
00:02
What was the price difference percentage at the time of recording?
easy
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What was the price difference percentage at the time of recording?
easy
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About 9%.
00:29
What is the recommended daily limit for moving funds through one account?
medium
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What is the recommended daily limit for moving funds through one account?
medium
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Not more than $15,000 per day.
03:55
What factors can eat into potential profits in arbitrage?
medium
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What factors can eat into potential profits in arbitrage?
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Commissions, transfer speed, and price changes during the transaction.
00:45
What was the final profit after commissions in the example?
medium
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What was the final profit after commissions in the example?
medium
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About $460.
03:55
💡 Key Takeaways
📊
Real Price Difference
Shows a concrete 9% price gap, making the arbitrage opportunity tangible.
00:29
🔧
Practical Execution
Moves from theory to practice, demonstrating the actual steps involved.
01:02
📊
Profit Realization
Confirms that the strategy yields a real profit of $480 in one pass.
02:56
⚖️
Risk Management
Provides a practical limit to avoid verification delays, showing awareness of operational risks.
03:55Full Transcript
[00:02] the situation at first glance is quite strange. The same Ether may have different prices on two exchanges at the same time . Moreover, sometimes the difference . Moreover, sometimes the difference can be really noticeable. And a
[00:15] logical question arises: if everything is so obvious, why doesn’t someone simply buy ether where it’s cheaper and sell it where it’s more expensive? This is what we will do today. expensive? This is what we will do today. At the time of recording, we have a difference of, uh,
[00:29] At the time of recording, we have a difference of, uh, about 9%. If you take, for example, 5,000 dollars, then the difference alone comes to about 450 dollars. It sounds great, but there is one thing. Seeing these 9% and actually taking them for yourself
[00:45] are two completely different things: commissions, transfer speed, price changes during the transaction. All of this can eat into potential profits quite quickly . Therefore, I suggest not to guess and not to look at beautiful numbers in theory.
[01:02] Now we're opening two exchanges, taking Ether, and literally seeing step by step what happens with these $5,000 in practice. Well, now let's move from theory practice. Well, now let's move from theory to practice and see how this whole
[01:16] scheme works in reality. First we need ether. One of the easiest options is to buy it via P2P on any major exchange you usually use. Binance, Bybit, Coin and so on. You can also use
[01:29] services like Best Change, which lists exchangers with reviews and verification. In my case, the starting budget is about $5,000, which is about 2.6 ether. Once the coins are in your wallet, go to Map Swap and first check
[01:43] the relevance of the link. Scroll through the list of coins, find Ethereum, and look at the current rate. If we see the desired difference, we can move on and register an account on the exchanger. After creating an account, check the exchange rate again in the
[01:58] Exchange tab. In the first field, select Ether, and leave USDT below. The difference is now just over $180 per coin. This is exactly what we will use in this deal. Next, in the right corner of the wallet, click on deposit.
[02:12] After loading, select ether. It is quickly accessible. We leave the network as default and click on “Get address” and copy it after loading. Then we return to the wallet where our coins are now located and click
[02:26] withdraw. Select Ether, paste the copied address, set the same network and indicate the exact number of coins. two-factor authentication and confirm the transaction. Now all that remains is
[02:40] to wait for the coins to arrive on Maped Swap. In the account history, we can already see the deposit, the balance has been updated and is ready for exchange. Go to the Exchange tab, select Ether, enter the entire available amount and click Swap. The order is executed
[02:56] and after the exchange the balance increases by approximately $480 in one pass. Now the last step is to withdraw USDT back to the main wallet. In my profile, I click withdrawal, select USDT and the ERC20 network.
[03:11] Next we need a shipping address. In my case it is BYBIT. I open the wallet, find USDT and click deposit. In the window that opens, I select the same network and the window that opens, I select the same network and copy the address. Return to Map Swap,
[03:24] insert it, select the available amount and confirm the withdrawal. After this, you can open the transaction history and check the status of the operation. Now all that remains is to wait for network confirmation. It usually takes a few minutes. After a short
[03:37] time, USDT is credited back to the balance, and the results can be summed up. In this example, I entered with $4,980 and withdrew $5,440. Taking into account commissions, the difference in this cycle was about 460 USDA. For one
[03:55] transaction the result is really good. And one more point that is worth considering. I would not recommend moving more than $15,000 per day through one account. After this amount,
[04:10] the exchanger may request additional verification of documents. This is a standard procedure, but it may take some extra time. Well, if you've watched up to this point, then the gist of the diagram is already clear. Thanks for
[04:26] staying until the end. Subscribe to the channel, like it, and let us know in the comments if you've encountered similar differences between exchanges before. Profits to all and see you in the next video. Yes.
