You could've bought $GALA on DEX and flipped it for a +10,000% profit on Binance 2 minutes later. Turn $100 into $100,000 instantly. Skeptical? It's the real deal for arbitrage guys.
🧵 on arbitrage - your secret pathway to a first mil in crypto 👇
Sharp price movements in the market make it easy to profit through arbitrage:
Events like the $CRV hack or the $ZRO listing created easy profits for arbitrage traders.
This thread will help you understand arbitrage and start making money from it.
Automating the Process with ChatGPT 🤖
I found a method to automate this process using ChatGPT:
Bot enables you to arbitrage any tokens with just a few clicks.
Anyone can set it up in minutes with the insights from this thread.
Understanding Arbitrage 📈
Arbitrage involves profiting from the price differences of the same trading pair across various markets and platforms. The profit percentage from arbitrage is known as the spread. There are several types of arbitrage:
CEX to CEX
DEX to DEX
Both: CEX to DEX & DEX to CEX
When is Arbitrage Most Profitable? 💰
Arbitrage is often most profitable during:
Token migrations
Hacks
Sharp price fluctuations
Token listings
Other similar events
During these times, market makers can't adjust prices quickly, allowing you to profit from the price differences.
Types of Arbitrage 💹
1. CEX to CEX Arbitrage
Description: Exploiting the price difference of coins on two different exchanges.
Best Conditions: Works best with exchanges that don't share liquidity.
Example: A pump or dump occurs on one exchange, and prices take time to equalize.
Nuances:
- Risk of account blockage for suspicious activities.
- Necessary preparation for the work.
- Closed deposits/withdrawals.
- Additional fees from exchanges.
Preparation:
Complete KYC on platforms like Binance, OKX, KuCoin, MEXC, GateIO, and Bybit.
2. DEX to DEX Arbitrage
Description: Exploiting the price difference of a token across different blockchain networks.
Bridges: Used to transfer assets between these networks.
Example: Sending assets from Ethereum to Arbitrum and selling them there.
Potential Problems:
- Additional transfer fees.
- Lack of liquidity for buying/selling.
- Necessary preparation for DEX to DEX arbitrage.
Recommended Networks:
Base, BSC, Matic, Ethereum, Solana.
Use MetaMask and Phantom to get started.
3. CEX to DEX & DEX to CEX Arbitrage
Description: Exploiting the price difference between a decentralized platform and a CEX.
Example: Recently used to arbitrage $ZK.
Complexity: This method is the most complex but often offers the largest profit margin.
Pitfalls:
- Encompasses all the issues found in earlier types of arbitrage.
- Problems can arise at virtually every step.
Creating an AI Bot with ChatGPT 🤖
To create an AI bot, go to ChatGPT and enter a prompt that instructs it to write the bot for you. In the prompt, be sure to mention:
Tracking percentages on different exchanges.
Automatic trading using APIs.
Risk Management Advice ⚠️
Only invest money in arbitrage that you can afford to lose.
This niche is highly risky, and it's possible to lose your deposit in just one cycle.
Allocate no more than 1-5% of your deposit to arbitrage to potentially earn profits.
