Why Same Crypto Has Different Prices?
45sThe concept of price differences across exchanges is intriguing and counterintuitive, sparking curiosity.
▶ Play ClipAI Summary
This video provides a practical, step-by-step guide to cryptocurrency arbitrage, specifically exploiting price differences for Ether (ETH) across different exchanges. The creator demonstrates with a $5,000 budget how to buy low on one platform and sell high on another, walking through the entire process from start to finish. The video emphasizes the real-world challenges of arbitrage, including fees, transfer times, and price volatility, while showcasing a potential profit of around $460 per transaction cycle.
Chapters
[00:02]
The Arbitrage Opportunity
The video introduces the concept of price differences for the same cryptocurrency (Ether) on different exchanges, highlighting that these differences can be significant, sometimes up to 9%.
[00:29]
Real-World Profit Potential
With a $5,000 budget, the potential profit from a 9% price difference is around $450. However, the creator notes that actually capturing this profit is difficult due to fees and market movements.
[01:02]
Practical Demonstration
The creator moves from theory to practice, opening two exchanges and using $5,000 to demonstrate the arbitrage process step-by-step, including buying ETH and transferring it to another exchange.
[02:41]
Executing the Swap
After transferring ETH to the second exchange, the creator swaps it for USDT, showing a balance increase of approximately $480 in a single transaction.
[03:37]
Final Profit and Withdrawal
The USDT is withdrawn back to the main wallet. The creator reports entering with $4,980 and withdrawing $5,440, resulting in a net profit of about $460 after all fees.
[04:04]
Important Caveats
The creator advises against moving more than $15,000 per day through a single account to avoid triggering additional verification (KYC) requirements, which can cause delays.
The video concludes that while cryptocurrency arbitrage is possible and can be profitable, it requires careful attention to fees, transfer times, and platform limits. The creator's practical example shows a net profit of $460 from a $5,000 cycle, but emphasizes the importance of understanding the risks and operational details.
Mentioned in this Video
Tutorial Checklist
3
02:15
Initiate a withdrawal from the first exchange, selecting the cryptocurrency and network (e.g., ERC20).
4
02:28
Paste the deposit address from the second exchange into the withdrawal form, ensuring the network matches.
7
03:11
Withdraw the stablecoins (USDT) back to your main wallet using the same network (e.g., ERC20).
Study Flashcards (5)
What is the approximate price difference for Ether mentioned at the start of the video?
easy
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What is the approximate price difference for Ether mentioned at the start of the video?
easy
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About 9%.
00:29
What was the net profit from the $5,000 arbitrage cycle demonstrated?
medium
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What was the net profit from the $5,000 arbitrage cycle demonstrated?
medium
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Approximately $460.
03:49
What is the recommended maximum daily transaction volume per account to avoid additional verification?
medium
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What is the recommended maximum daily transaction volume per account to avoid additional verification?
medium
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$15,000.
04:04
What are the three main factors that can eat into arbitrage profits?
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What are the three main factors that can eat into arbitrage profits?
medium
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Commissions, transfer speed, and price changes during the transaction.
00:45
What network was used for the USDT withdrawal in the example?
easy
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What network was used for the USDT withdrawal in the example?
easy
Click to reveal answer
ERC20.
03:11
💡 Key Takeaways
📊
9% Price Difference
Quantifies the arbitrage opportunity, making the potential profit tangible.
00:29
📊
Net Profit Realized
Provides a concrete, real-world result of the arbitrage strategy after all fees.
03:49
💡
Risk of Verification
Highlights a practical, often overlooked operational risk that can lock up funds.
04:04Full 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 to practice and see how this whole
[01:16] scheme works in reality. First we need ether. One of the easiest major exchange you usually use. Binance, Bybit, Coin and so on. You can also use services like Best Change, which lists
[01:32] 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 the relevance of the link. Scroll through the list of
[01:46] 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 Exchange tab. In the first field, select
[02:00] 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. After loading, select ether. It is
[02:15] 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 withdraw.
[02:28] Select Ether, paste the copied address, set the same network and indicate the exact number of coins. We check all the data again, go through two-factor authentication and confirm the transaction. Now all that remains is
[02:41] Swap. We can already see the deposit in the account history . The balance has been updated and is ready for exchange. Go to the Exchange tab, select Ether, enter the entire available 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 you can [music] sum it up. In this example, I entered with $4,980 and withdrew $5,440. Taking into
[03:49] account commissions, the difference in this cycle was about 460 USDA. For one was about 460 USDA. For one transaction the result is really good. And one more point that is worth considering. I would not recommend
[04:04] moving more than $15,000 per day through one account. After this amount, the exchanger may request additional verification of documents. This is a standard procedure, but it may take some
[04:18] extra time. Well, if you've watched up to this point, then [music] the gist of the diagram is already clear. Thanks for staying until the end. Subscribe to the channel, like it, and let us know in the comments if you've encountered
[04:32] similar differences between exchanges before. Profits to all and see you in the next Profits to all and see you in the next video.
