Hello,
As far as I know, an arbitrage is a two-dimensional transaction that increases the number of coins on each exchange without having to transfer money.
For example,
Assuming that both A and B exchanges have BTC and ETH of 1 BTC and 12 ETH, respectively, with a total of 2 BTC + 24 ETH,
At any moment
A exchange 1BTC = 12ETH
B Exchange 1BTC = 13 ETH
We sell 12 ETHs on A exchange and buy 1BTC to become 2BTC total.
I buy 1 BTC at B exchange and purchase 13 ETH to become 25 ETH total.
The result is 2BTC + 24ETH and 2BTC + 25ETH.
There are blind spots here,
1. Because the bots will soon disappear, premiums must be traded quickly and individuals can not trade on their own. (4 ~ 5% of transactions, even within a few seconds, actually 3% profit due to time difference)
2. A few foreign exchange accounts (Korea, Japan, etc.) must be opened in advance, and coins must be deposited in a number of cases.
3. Mental problems, volume problems, troubles of using OTP, etc.
as you know
I already use this arbitrage to bite the difference.
The only way people can eat is to use things like reminders.
There are several alerting services in telegrams such as @cryptomarketalert_bot and @panicwatch.
It's also on Twitter and the website.
However, I am wondering how much I can really profit from the blind spots I wrote above.
I guess that there are a lot of bots for arbitrages so I'm not sure if individuals can make it.
If you have a good idea, I want to share it.
Wow! I never thought that it was possible and indeed it is a useful technique to earn in quick profits! I will try that sometimes and will hope to have a better results on my tradings.
That is because if you use the method OP describes there is a lot left up to risk and chance. You will have to wait the time it takes to transfer the Ethereum not to mention you picked the biggest altcoin to do this with. Some of the smaller alts aren't fast, and at the same time when you have a big discrepancy I have found the wallet to be in maintenance on one of the two websites. It is tough to find an arb spot like this, you either need a bot or loads of capital on lots of websites.