What is Crypto Arbitrage?
54sClear, simple explanation with a relatable example makes it easy for beginners to understand.
▶ Play ClipThe video explains cryptocurrency arbitrage as buying a coin cheap on one exchange and selling it dear on another. It covers three main types: inter-exchange (spot) arbitrage, futures arbitrage, and cross-arbitrage. The presenter also discusses tools like CryptoRank and scanners, highlights risks (mistakes, scams), and promotes a trading bot (Dragonfly) that claims 8–12% monthly returns.
Arbitrage is buying crypto cheaper on one exchange and selling it for a higher price on another, e.g., Bybit vs OKEX.
The price difference (spread) arises because trading volumes differ across exchanges; arbitrageurs profit until prices equalize.
Three types: inter-exchange (spot), futures (spot vs futures), and cross-arbitrage (using different coins).
CryptoRank and Arbitrage Alert scanner are tools to find arbitrage opportunities; CryptoRank now requires a subscription ($15/month).
Futures arbitrage: buy on spot, open a short futures position, profit when prices converge.
Cross-arbitrage: convert one crypto to another on Exchange A, transfer, sell on Exchange B for profit.
Risks include mistakes (wrong coin/network), slow reactions, and scams promising fixed returns.
Dragonfly bot claims 8–12% monthly (moderate) and 5–8% (conservative); example: $274 profit in 18 days.
"The title promises a clear explanation of crypto arbitrage, and the transcript delivers exactly that, covering types, tools, risks, and a bot promotion."
What is cryptocurrency arbitrage in simple terms?
Buying a cryptocurrency cheaper on one exchange and selling it for a higher price on another exchange.
00:17
What are the three types of crypto arbitrage mentioned?
Inter-exchange (spot) arbitrage, futures arbitrage, and cross-arbitrage.
01:01
What is a 'spread' in arbitrage?
The difference in price of the same cryptocurrency on different exchanges.
00:32
Name two tools mentioned for finding arbitrage opportunities.
CryptoRank and Arbitrage Alert (scanner).
02:26
What is an 'arbitrage bundle' (связка)?
The process of buying crypto cheap on one exchange, transferring to another, and selling for profit.
01:59
How does spot trading differ from futures trading in the context of arbitrage?
On the spot market you own the crypto; on futures you open a contract (short position) betting on price decrease.
05:44
How does futures arbitrage work according to the video?
By buying on spot and opening a short futures position on the same asset, then closing when prices converge.
06:35
What is cross-arbitrage?
Using a different cryptocurrency (e.g., BTC to ETH) to transfer value between exchanges and profit from price differences.
07:17
What are the main risks of crypto arbitrage?
Mistakes like buying wrong crypto, using wrong network for transfer, slow reactions, and scams promising fixed returns.
08:35
What monthly returns does the Dragonfly bot claim?
8–12% per month (moderate) and 5–8% per month (conservative).
12:47
Arbitrage definition
Provides the foundational concept of buying low and selling high across exchanges.
00:17Three arbitrage types
Categorizes the main strategies: inter-exchange, futures, and cross-arbitrage.
01:01CryptoRank tool
Demonstrates a practical tool for finding arbitrage opportunities, though now partially paid.
02:26Risks and reality
Highlights that arbitrage is not easy money; requires skill, speed, and risk management.
08:35Dragonfly bot promotion
Introduces an automated solution with claimed monthly returns of 8–12%.
12:28[00:02] but still haven't figured out how to make money on it. And what exactly it is, we'll break it all down and figure out how to make a profit on crypto arbitrage and we'll definitely discuss the risks and nuances. You're on the
[00:16] channel, ser. Crypto traders and investors with twenty years of experience, let's get started. So, what is cryptocurrency arbitrage, in simple terms, is buying cryptocurrency cheaper to sell it more expensive. For example, we have two cryptocurrency exchanges, bybit and
[00:30] have two cryptocurrency exchanges, bybit and k, and the price for the same cryptocurrency is slightly different, that is, there is a small gap, a spread of, for example, half a percent, 1%, and we buy cryptocurrency on the first
[00:43] crypto exchange, let's say, on babbit, for example, for $100. We bought 10 coins, for $100. We bought 10 coins, transferred these 10 coins to the crypto exchange, ok, and sold it for more, for example, not for $100, but for $110,
[00:56] accordingly, the difference of $10 is our earnings. experience in cryptocurrency arbitrage and which exchanges you used. Now let's look at what types of arbitrage exist. We just discussed the so-
[01:09] called inter-exchange arbitrage in the example. This is the first type, when the same spread arises on different cryptocurrency exchanges, difference in the price of the same cryptocurrency. This occurs due to the fact that trading volumes on different cryptocurrency exchanges are
[01:24] still different. In some places, more was bought at a time, in other places, the price of cryptocurrency is lower. As is known, we have market participants moving, so, for example, on the Bybit cryptocurrency exchange, they bought a billion worth of some cryptocurrency, our rate
[01:37] shifted, but on the Ox cryptocurrency exchange, for example, there was no such purchase. Of course, cryptocurrency exchanges strive to level the rate so that it is the same everywhere, but while they have some kind of connection between themselves, while this rate is leveled, we
[01:51] have a time gap to make money on this. Sometimes it is seconds, Sometimes it is seconds, minutes, sometimes it can reach hours. Well, within a day, let's say this is an adequate connection. Here we immediately introduce such a concept
[02:04] as an arbitration connection. An arbitration connection is this process when we bought crypto cheaper and transferred it to another cryptocurrency exchange. Sold, fixed the Profit. This means we scrolled the link in the arbitrageur slang
[02:18] for spot arbitrage, you can use, for example, the cryptorank coin section, open the coin we are interested in and there is an Arbitration tab, a link for registration in the description under the video on cryptorank, so before everything was
[02:32] open now. As we can see, a subscription is needed. Understood. Everyone wants to make money on their resource. Let's see what subscriptions are available here. Well, in principle, there is still a free subscription option. I also think it will suit many. If you
[02:49] take it purely for a month, $15 is a quite adequate price. And here we see on which crypto exchange we should buy and on which one to sell, for
[03:01] buy and on which one to sell, for example. Here is a on the crypto exchanges that I use, I will leave it in the description under the video with
[03:16] the maximum welcome bonuses. As we can see, on the Link coin, now on one crypto exchange, the price for one coin is now $14.40. And on the now $14.40. And on the Backpack crypto exchange, the price for one coin is
[03:29] $14.75. That is, as we see, there is A good spread of 35 cents from one coin, naturally, we can buy 10 coins, 20 and this will already be tangible money. Well, actually, the spread is written at 2.36, which means that
[03:46] we can potentially make money from one combination now, but of course, each combination needs to be checked beforehand, taking into account the commission and other nuances. You can find a more detailed video analysis on my channel, pli stakh, there is already a
[04:02] whole training course, so go to the playlists channel and you will find the Cryptocurrency Arbitration playlist. Anyone who wants to thoroughly immerse themselves in Cryptocurrency Arbitration will find it useful to view this playlist.
[04:15] Various screeners are also used for arbitration, for example, Arbitration Alerts. I will also insert a link only screener of its kind. But using works. That is, we receive such combinations in Telegram. Here we have
[04:30] exchanges, for example, Hoby Mess, that is, on HBI we buy some crypto, transfer it to Mex and there we sell it, it is indicated what we buy for, liquidity rate
[04:42] That is, the current price of the cryptocurrency is immediately taken into account, the commission is indicated, the liquidity on the second crypto exchange is also indicated, the rate at which we can sell is also indicated, and below we have the spread, that is, the percentage of one combination
[04:56] that we can potentially earn, again, all this is not guaranteed, as I already said, the combination lives for a minute, an hour, a day, no one can say this for sure, that is, the first type of arbitration we have is spot arbitration, the
[05:11] second type of arbitration is arbitration using futures. We have a spot market, we have a futures market, for example, on the same bybit crypto exchange, in the mobile application, we go to the trade section, find
[05:25] arbitration and here we see a list of pairs, we see columns AP is the estimated annual return. We go to the pair we like. We have a column for spot trading and here for futures. As we can see, the spot price differs from the
[05:42] futures price. At the top we see the spread that we can earn, that is, at the moment, the spot price for the coin differs from the futures price. Spot differs from futures in that on spot we acquire cryptocurrency as our
[05:57] how long we need to transfer or sell it on futures, we simply open a contract, a kind of agreement, and between these two markets, the rate for the same cryptocurrency often differs, but eventually, over
[06:13] time, it will level out one way or another, that is, we just have to wait until it levels out, sooner or later this happens, I will leave a registration link in the description under the video, using my link you will receive
[06:26] the maximum welcome bonuses. We do not miss this chance for registration, so we set the number of coins that we want to scroll in this bundle and click so that we simultaneously buy cryptocurrency on
[06:38] spot and on futures, more precisely, on spot we will have a purchase, because on spot we only have a purchase. And on futures, we will open a short position. That is, a sale in the opposite direction. When our prices are compared, we will get a
[06:52] profit. The third type of arbitrage is cross- arbitrage, for example, on the same On a crypto exchange or between different ones, we exchange Bitcoin for Ether, and then, for example, transfer the Ether to another crypto exchange and sell it there for USDT, that is, a stable Coin.
[07:08] This is a kind of triangle in which spreads also often arise. For example, on Bybit, we bought Bitcoin for $100, exchanged Bitcoin for Ether, transferred Ether to the Ox crypto exchange, and on the Ox crypto exchange, we sold it
[07:24] for, say, $110. That is, this difference of $10 is our spread, this is our profit. We also look for coins on the crypto market. For example, we take Bitcoin and Ether. Of course, these can be other cryptocurrencies. Well, we switch to Bitcoin and
[07:40] look at the Arbitration tabs, for example. Here is a more complex combination on the more complex combination on the Exmo crypto exchange: we exchange Dai for BTC, Exmo crypto exchange: we exchange Dai for BTC, transfer BTC to K, and on KSE we
[07:53] sell BTC for USDT, which is a stable Coin, which is also worth one dollar. That is, we initially bought Dai for a dollar and at the end of the combination, we also received dollars, of course. All this needs to be checked before making any combination. Again, there
[08:08] should be some proven and reliable crypto exchanges. Not just a minute of attention, guys, don't forget to like, leave your comments, and of course, subscribe to the channel. We will understand new
[08:21] strategies for earning together. Now let's discuss the advantages and risks of arbitrage. The advantage is that we can quickly get a good return with a relatively low risk with the right approach. An experienced arbitrator
[08:36] can earn several percent or tens of percent of his deposit per day. And of course, there are risks here, there are quite a few risks. Firstly, due to inexperience at the beginning, these can be inevitable losses, since when you are
[08:52] just starting out in arbitrage, you need to understand how everything works. It is elementary to accidentally buy the wrong cryptocurrency or make a transfer on the wrong network and lose funds. You also need to be able to
[09:06] react quickly and check the spread because the spread is going away, and here certain skills are already needed to also understand the prospects of the combination. Look at the chart to determine at what point this spread appeared. For example, it happens when
[09:21] some strong impulse occurs. And in This is the moment when that very spread appears in such a situation. Yes, there is a possibility of quickly buying and then again, all this is done quickly, we quickly transfer and sell. Here, too, you need to understand the
[09:35] networks. Which networks provide fast transfers, through which network the transfer takes a long time. All these are nuances that you need to learn to delve into and immerse yourself in. That is, this is a kind of Crypto work that at first glance is perceived as easy money on this
[09:51] crypto exchange, bought quickly, transferred to another, sold everything, earned, but in reality, it is really hard work that requires both experience and skills. Well, where would we be without scammers? This is a separate topic for conversation. But we will still
[10:05] briefly touch on it now. In a certain period, cryptocurrency arbitrage has become very period, cryptocurrency arbitrage has become very popular and, frankly speaking, a
[10:21] great interest, we have scammers who post all sorts of ads where they write and promise some kind of bundles that last for weeks stably, who tell us that reality is not as it is,
[10:37] that a bundle can last for one minute, sometimes a second. That is, by and large, you can simply buy cryptocurrency, transfer it, and then not sell it for the same amount. money and sell even at a loss, scammers, on the contrary, arrange
[10:50] everything so that it seems as if you are buying crypto cheaper, transferring it to another crypto exchange and, in any case, selling it for more, receiving a certain, and there is even a fixed percentage, let's say sometimes it is fixed, sometimes
[11:03] they pretend that it is some kind of floating percentage. This is all done in an elementary way, they simply slip you some kind of fake exchanger where they let you spin the allegedly same link several times. They even show the earnings and there are
[11:17] simply a lot of such sophisticated scams on the Internet now. How to protect yourself from this. Elementary. Don't trust anyone who promises you arbitrage links who promises you arbitrage links that last for days or months and, again,
[11:30] only a certain person knows about this link, who, of course, will gladly share it with you and show you where. Where to go, that is, it is very secret. That is, in fact, arbitrage links are quite easy to find using the
[11:44] same Crypto Market, some arbitrage screenshots, someone manages to search for them manually. There are many ways here. The problem here is not in finding this link, but in In order to spin it efficiently, so to speak, not to lose on the exchange rate, not to
[12:00] lose during the transfer. That is, they earn here precisely on experience, so we are in no hurry to get involved in some super- profitable offers; you can earn money on crypto art, but it really is work. Also, for those who do not want to spend
[12:13] a lot of their time, there are truly automated trading methods. There is nothing to configure. I just installed it, launched it, and the
[12:25] bot trades itself, earning me a profit. I spend literally a minute of my time a day to check if everything is in order with the bot, check the state of the deposit, the bot does the rest on its own. I launched it on June
[12:41] 29, 2020. Today we have 1811 twenty-four. The bot 1811 twenty-four. The bot earns me from 8 to 12% per month, if we take moderate for the current month, the bot has already brought me $ 274, almost 10% in
[12:59] 18 days. Yes, this month there was a lot of news, we had the elections in the US this month, there were strong movements in the market that many bots could not withstand, but Dragonfly He is steadfastly surviving all these events and continues to earn
[13:14] additional income. I recently launched a conservative dragonfly, which also conservative dragonfly, which also brings in 5 to 8% monthly. This month it has already brought me $111, which is 5% of the deposit. You will find a video with more
[13:29] detailed information, as well as step-by-step instructions for installing the dragonfly trading robot in the description of this video. Let's summarize. way to earn money, which can really make good
[13:44] money, but it is very important to thoroughly understand and competently manage your risks, that is, at first. Of course, this should be a small amount with which you can practice well, get bumps and then it is possible to
[13:58] increase the deposit. In my videos, I do not give any financial recommendations. The risks are on each of us, so we must think and make decisions. Also, be sure to like and subscribe to the channel in the description. I will leave a link to my Telegram
[14:12] channel. Instagram channel. I will be glad to everyone. Don't forget about the comments on this. I have forget about the comments on this. I have everything. All the best to everyone and successful trading.
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