Crypto Arbitrage Explained — Step-by-Step Guide & Transcript

[00:02] The first one is light X's every day. There is zero risk. Just press the button. This is a scam. And now we’ll figure out why. Second. Create 10 exchanges, 300 accounts and buy a scanner for

[00:14] 80 bucks a month. This is no longer a scam, but simply a pain in the ass out of nowhere. But the truth is in the middle. It's possible to trade coin prices for free, without even leaving the exchange. without magic and without fairy tales.

[00:31] Now I'll show you how it actually works , where to look for connections and how much you can [clears throat] My name is Sergey, I am the author of the SRK twenty years of experience, disclaimer: no financial recommendations in this

[00:44] video. Let's go. The principle itself is simple: to the point of ugliness. The same coin almost never has the same price on different exchanges . Somewhere a few kopecks more expensive, somewhere cheaper. This difference in price is called the spread. [music] And arbitration

[01:00] is when we make money on this difference . Roughly speaking, we buy where it’s cheaper and sell where it’s more expensive. Where does the difference come from anyway? Each exchange is a separate cauldron with its own liquidity, its own crowd, and its own

[01:15] demand. On one site the coin has already been dispersed, on the other it has not yet. Here's the run-up. It comes out most strongly during moments of activity. Listing of a new coin, delisting, sudden leak, technical failure on the exchange. When the market is shaking,

[01:32] the spreads are bigger, and it is shaking regularly now. And here is the first trap that catches newbies. Videos in the style of a bundle of 18% in 1 day, you win either bundle of 18% in 1 day, you win either way, sounds like a dream. In reality, it's

[01:47] almost always a half-truth, because the fattest spreads live on small, murky exchanges and on new coins, where the price jumps like crazy. And here is the real rake. By the time we enter, the spread has already collapsed. The exchange took it and froze the

[02:02] withdrawal. The price was tugged on the shoulder, in the wrong direction. And hello, liquidation. You win either way, that's a lie. It's easy to lose here. The real figures are more modest. not x's per day, but a small stable percentage. And during the first few

[02:17] months, a newbie doesn't earn money, but rather learns and tests out small details. Anyone who promises otherwise is either selling a course or scamming you. Okay, the theory is clear. Now where to look? Let's start with the free method. Open the regular Coin Market Cup, go

[02:33] to the cryptocurrency section, and filter by daily growth. Let's take the top growing daily growth. Let's take the top growing coins. The logic is simple. Where a coin has suddenly exploded, there is usually a divergence between exchanges. We open any such

[02:47] coin, scroll down to the list of markets and see right there on which exchange see right there on which exchange it is traded at what price, where it is cheaper, where it is more expensive. Here is our spread in plain sight. And it's free. And here's what's important about

[03:01] free search. A spread found on your own is often fatter than what you get in established Telegram channels. with ligaments. There are thousands of subscribers there. A good combination is gobbled up by the crowd in seconds. There's no time to go in. And your own, dug

[03:18] by hand on a fresh coin, is almost never occupied by anyone. This is where the real jackpot is hit, which the crowd didn’t even see. Paid screeners search faster, yes, but they won't do magic. The same commissions, transfers and delays will also apply to them.

[03:35] Therefore, it is worth starting with your own hands and for free. touch it and understand whether it is necessary at all or not. You'll find your own approach, come up with combinations that the crowd doesn't see, and a couple of transfers where the spread melts right in the process will quickly show whether

[03:49] it's worth it or not. And this search itself through Coin Market Cup won't cost a penny. The service is free - it is not a paid scanner. The real costs will only show up later in commissions and transfers, when it comes to the transactions themselves. If this

[04:03] information has already helped clarify the situation, the best support for the channel is a like, comment, and subscription. At the same time, it’s a signal to the algorithm that the topic is needed. We also have a separate Telegram channel where we post the latest

[04:16] cryptocurrency news, along with various bonuses and promotions. Link in the description. Let's say we found the spread. Next, it needs to be worked on. And there are two ways here. Both have their own rakes. The first path is classical. Buy a coin where it is cheaper. Transfer it to the exchange where it is

[04:32] more expensive and sell it. Sounds easy, but here's the catch. Transfer between exchanges is time. The network is slow, the transfer is taking a long time, and the spread just collapses in those minutes. Plus withdrawal fee. Plus, the exchange can close your account at the most

[04:47] inopportune moment. Plus there's an error with the network or the meme tag, and there's simply no money. For a beginner, the path is nerve-wracking. The second way without translations. We open a long position on one exchange , where it’s cheaper. On the other short. where it's more expensive, and wait until the prices

[05:03] converge. There is no need to move the coin around the network anymore, that's a plus. But this is leverage, two different accounts. And if the spread widens even more before the contraction, you could end up with a liquidation on one of the legs. And fat spreads again live on shady

[05:18] small exchanges that you can’t put a finger in their mouths . These types easily freeze withdrawals or disappear with the money altogether. it's also far from sweet. And if anyone still decides to run their own links between exchanges, here are links to the top crypto exchanges I use

[05:33] myself, with the highest registration bonuses. And these bonuses reach up to 30,000 dollars, I’ll leave it in the description under the video. And now comes the most interesting part. Chasing flashing spreads across ten exchanges, catching transfers and

[05:48] withdrawal freezes. It's a nerve-wracking undertaking, and for a beginner, it's usually a losing one. But you can play this game more calmly, without chasing the entire market for differences, and instead earn money by hedging on a single exchange, where both spreads and funding are already built into the

[06:04] interface. No ten accounts, no back-and-forth transfers, no shady platforms. This is exactly how it is done at Bybit. Arbitration is built right into the exchange itself. This is the top crypto exchange in the world. It features a user-friendly trading terminal,

[06:19] spot futures trading, a variety of earning tools, Spot X, primarket, trading, copy trading, and trading bots. You can open a crypto deposit in the BKing EORN section. You can also open a payment card for yourself, just like a

[06:34] bank card. Only here you can pay for purchases with cryptocurrency. After registration, we complete verification in the Buy Cryptocurrency P2P Trading section. You can top up your balance using a bank

[06:48] card or any other payment system. description below the video. [music] Don't miss your chance. And if you don’t understand something, go to the channel, playlists. Here is a whole playlist of

[07:03] BYбиit Bybit training for beginners. In this playlist, you'll find answers to almost all your questions about the Bybit crypto exchange. It also discusses numerous ways to make money on this crypto exchange. How does it

[07:16] work on fingers? First, where to press. Go to Bbebit, go to the main page, trade section. And here we go down. This is how spread trading, or arbitrage, is signed.

[07:29] Let's open it. And right here on the welcome window we have full instructions. You can read from beginning to end to find out how it all works on the exchange itself. Click finish after you have read it. If you're using a mobile device, go

[07:43] you have read it. If you're using a mobile device, go to the markets section at the bottom, select it, and at the top, select futures. Just below that, in the drop-down box, change the perpetual to arbitrage. This opens the section where the coins are already sorted for us in a separate

[08:00] tab by funding and a separate one by spread, that is, by price difference. Below are two working diagrams. Let's move from a calm scheme to an exciting one. The first is funding. It’s simpler and the profitability is more modest, but it’s stable. The second one is right after it, a bit more

[08:15] exciting. There's a bigger prize to be had there. We'll get to her next . Let's start with funding. Fast. What is this? In perpetual futures, every 8 hours one side pays the other to keep the futures price consistent with the regular

[08:30] futures price consistent with the regular spot price. If there are too many longs, the longs pay the shorts. If there is an overabundance of shorts, on the contrary, they pay simply for the fact that the position is on the right side. Now the diagram itself, and this is a hatch, that is,

[08:44] insurance on both sides at once. We take a coin and make two trades simultaneously, we stake it, say, for $500 without any leverage. We just buy a coin. And then we open a short position on futures for the same 500. What happened in the end

[08:59] ? On one hand we are in the black if the price rises, on the other we are in the black. If it falls, they cancel each other out. The exchange rate can go up or down, and we don’t care . In terms of price, we are at zero, but funding is trickling in at this time. If it is

[09:14] positive, our short gets paid every 8 hours. This is pure profit without any bet on where the market will go. How much is this in money and

[09:26] immediately honestly, without fairy tales about X's per day. Funding is a long game. This is about a percentage, not a one-time sum. We take 500 dollars. With calm funding, this is pennies a day. Let's not make up any other ideas, but funding is picking up speed. On a

[09:42] heated coin, where the crowd has packed in to go long, it easily sits between 1% and 3% in 8 hours and stays that way for days. We translate this into annual interest, which is a hundred, or even

[09:55] several hundred percent. and not drawn on a piece of paper by the inflators, but on a real hedged position that doesn’t care at all which way the market goes. No bank or staking company comes close . Let me be honest, hundreds of

[10:09] dollars in absolute terms is still not much. But not because the scheme is weak, but because it is a hundred. The percentage is really fat. The deposit will grow, and the same interest will turn into normal amounts. But the scheme doesn’t change even a little.

[10:24] And here's what's most important about it. This hundred bucks will almost certainly survive, the position is hedged, the market can’t stand it. Unlike guessing games, where a newbie can lose their hundred in one evening, funding is boring, slow, and

[10:39] stable. Money works at a rate that you won't find anywhere else, and it works in any market. A couple of working little things. We take the spot without leverage for the entire amount. It's just a coin in a wallet. And you can open a short with a little leverage

[10:54] so as not to freeze your entire capital, but then you have to keep an eye on the walrus, otherwise it will knock you out. Baibe has an automatic rebalance for this. He trims both legs himself. And secondly, commissions. The stock exchange takes its toll for entering and exiting on both legs . Therefore, there is

[11:09] no point in racing too short. The scheme is to come in and hold it calmly, not to go back and forth. For a beginner, the easiest way is this: the smaller the shoulder, the more peacefully you sleep. The second scheme is on the spread. and she is more reckless. If funding is slowly dripping in interest, then

[11:25] you can hit the jackpot all at once on the spread. The mechanics themselves are also hedgehog. The exchange already has an automatic spread search implemented. That is, we go back to the trading section. Spread trading, as we have already discussed. And here, as we can see, we have

[11:40] three coins presented: Bitcoin, Ethereum and Salana. We can catch that same spread using them . Spreads vary. The exchange has already automated everything. Click here. Here we see both buying and selling at once. For example, buying on futures, selling on spot.

[11:56] We select the quantity. Next, you can click buy and earn the spread gradually. This still needs some practice. There is an instruction button here. If anything, you can scroll through it again. But here we have only three coins presented.

[12:11] We can now search for fatter spreads manually by opening the spot trading section . Futures and margin trading nearby. When a coin suddenly shakes, the futures and spot prices diverge by more than a few cents. It can be two percent, and on

[12:27] fresh hot coins it can be as much as five percent, or even more. We go in both directions. We short the spot coin and the futures contract in equal volumes. And when the price converges back, we close both legs and take the entire difference. 5% net is

[12:43] entire difference. 5% net is $5 out of $100 in one go. and 25 from 500 in one lap in a matter of minutes. And on a hot day, several such windows may slip through. True, there may not be just one. This is not on schedule. And let's be

[12:57] honest, the spread is not a salary, but a bonus. It is caught less often than funding, but it hits bigger. The connection is as follows. Funding is the foundation that always ticks, and the spread is the jackpot that sometimes turns up. And a separate important

[13:13] point, so that there is no confusion at the end. You can hear that somewhere the spreads You can hear that somewhere the spreads are catching much fatter, at 10-15%. It just happens that these are almost always not buy-ins, but small, little-known exchanges. And that’s where the

[13:26] very circus begins, the one we started all this to escape from. Such a platform will easily freeze withdrawals and may turn out to be illiquid. It's easy to get in , but impossible to get out. There is no one to sell to, or else it will disappear altogether

[13:41] along with the money. The rule is simple. The fatter the spread at some dump, the higher the chance of getting stuck there. So, while the spread on B-bet may be more modest and there aren't a ton of options , it's still a decent exchange. It's easy to understand , everything is at hand and there's

[13:57] minimal risk to the site itself. Anything can happen to any exchange , but BBIT is currently one of the top five crypto exchanges worldwide, so its reliability has been proven by hundreds and thousands of users. And as a result, everything

[14:12] is done in a couple of steps. There's no need to move coins around the network, get frozen withdrawals, keep money God knows where, or merge two accounts. We went in, looked at the list,

[14:24] put together a bunch in a couple of clicks, left it to collect funding, monitored it a couple of times to collect funding, monitored it a couple of times a day, and that's it. This is exactly it. Everything in one place, minimum movement. Now let's be honest about the risks. Without them, it would be

[14:38] half the truth. First, funding is not eternal. It floats and can go into the negative. Then you'll have to pay out of your own pocket. So we need to keep an eye on him. The second is the shoulder. On the Hedge it's small, but if you don't pay attention to the margin, it

[14:53] will knock you out. Third. Commissions are eaten up by thin spreads, so we calculate them in advance rather than by eye. Fourth. We do not keep large sums on small, shady exchanges. Just the beard, the rest is in a cold wallet. And the fifth golden rule:

[15:08] always test a new connection on small details first. It's better to earn a little than to get into big trouble because of haste. Arbitration is not a jackpot, it is boring, methodical work, little by little. Those who understand this, earn money. And those same X's per day

[15:23] without risk from the beginning of the video, that's not here. Here everything is hedged, more modest and honest, but it really works. And one more thing. Arbitration is about the difference in price. without any forecast of where the market will go. But if you want to trade

[15:39] in direction, without guessing at candlesticks, but seeing where large capital is actually going , that's a different story and a different instrument. To make money from this market right now, I don't spend hours poring over charts; I use ready-made

[15:53] analytics from the Help for Trade team. Experienced traders sort through the market themselves and post ready-made setups in a closed channel . Where is the entry, where are the risks, where is the profit? Everything is chewed up. And most importantly, not just technical analysis, but tracking large

[16:09] capital using Highbck Capital metrics. You can see heat maps of liquidity, You can see heat maps of liquidity, Bdaask, and zones where whales are gaining positions. That is, we go where the big money goes, and don’t guess by candles.

[16:23] The decision, of course, is always ours. This is not a money-making button, but normal trading, where you earn money over time. But when situations are taken away for you and you are shown where the big guys are looking, it’s a completely different game. I'll leave a link to Hell for Trade in the

[16:38] description below the video. To put it briefly , arbitration is a real topic, but not magical. You can search for bundles for free manually at Coin Market Cup. And if you don't want the hassle of transfers and ten exchanges, everything is already

[16:53] collected in one place on Bybit. We take hedge funding and don't guess the direction. The main thing is small amounts, a cool head and calculating the commissions. And real-life analyses and deals are featured on the channel in a separate playlist: cryptocurrency arbitrage without cards,

[17:08] inter-market arbitrage. If anyone is interested, come in and take a look. And remember, in arbitrage, the winner isn't the one chasing 20% ​​a day, but the one who calmly and tediously takes what's theirs and doesn't lose it out of nowhere. Be sure to

[17:22] subscribe to the YouTube channel so you don't get lost, and also subscribe to the Telegram channel, the link is in the description below the video. That's all from me. All the best and video. That's all from me. All the best and successful trading.