After I was liquidated three times in a row, I stopped doing contracts and instead looked for more stable ways to make profits in the cryptocurrency world. After three months of research, I finally came up with one: cross-chain arbitrage, using the speed of JoyID + Lightning Network to earn cross-chain price differences in seconds.

The principle of cross-chain arbitrage is actually very simple, which is to find the price difference of the same asset between the chain and the exchange, and then quickly move it from the high-priced place to the low-priced place to earn the price difference. The most critical thing is speed, so the wallet I use for trading is JoyID+Lightning Network (the token is $CKB ), which can quickly transfer money and move it back and forth.

1. Introduction to JoyID Wallet and Lightning Network

JoyID is a Passkey wallet that first supports the Lightning Network. The Lightning Network is a second-layer protocol based on Bitcoin, aimed at solving the problems of slow transaction speed and high fees. Through the Lightning Network, users can conduct nearly instant Bitcoin transactions with very low fees. The Passkey wallet is a mechanism for storing private keys in devices to verify identity, providing higher security and convenience.

2. Principles of Cross-Chain Arbitrage

The core of cross-chain arbitrage is to utilize the price differences between different blockchain platforms for profit. For example, on one exchange, the price of USDT (a stablecoin pegged to the US dollar at a 1:1 ratio) is $1.01, while on another exchange, the price is only $0.99. At this point, you can buy USDT in the low-price market and then transfer it to the high-price market for sale through a cross-chain bridge, thus earning the price difference.

3. JoyID + Lightning Network Arbitrage Tutorial
Practical Steps (you can learn the logic, but you have to find opportunities on-chain yourself)

  1. Capital Preparation (taking BTC and WBTC cross-chain price differences as an example):

    • Deposit enough BTC in the JoyID wallet as the principal for arbitrage.

    • Ensure the address is correct and ready to receive WBTC.

  2. Look for price differences (find targets yourself):

    • By using market monitoring tools or manual comparison, discover the price difference between BTC on the Bitcoin blockchain and WBTC on Ethereum.

    • Determine the profit target for arbitrage, such as earning a price difference of $300.

  3. Quick Transfer and Conversion (this is where the advantages of the JoyID wallet come in):

    • Use the Lightning Network feature in the JoyID wallet to transfer BTC from the wallet to an exchange or bridging service that supports the Lightning Network (if the bridging service directly supports the Lightning Network, otherwise you may need to first transfer BTC to the exchange and then convert it through the exchange's bridging service). This step can be completed almost instantly, greatly reducing transaction delays.

    • Convert BTC to WBTC on the cross-chain bridge and send WBTC to your Ethereum wallet. This step may incur some fees, but compared to traditional transfer methods, the fees of the Lightning Network will be significantly lower, and the fees of cross-chain bridges are usually reasonable as well.

  4. Sell WBTC (optional):

    • If you intend to convert WBTC to other assets, you can register an account on an exchange that supports Ethereum assets and transfer WBTC to that exchange.

    • Sell WBTC on the exchange to obtain other assets (such as ETH, USDT, etc.).

  5. Withdraw Earnings:

    • If you choose to sell WBTC and obtain other assets, you can withdraw these assets from the exchange to your Ethereum wallet or bank card.

    • Calculate the earnings from arbitrage, which is the value of the assets obtained from selling WBTC minus the initial value of the BTC invested (calculated at the market price at the time of sale).

Currently, my principal is 10,000 U, and I have several opportunities each month to earn profits through cross-chain arbitrage, with a stable profit of around 600 U. Throughout the cross-chain arbitrage process, the combination of JoyID wallet and the Lightning Network provides you with great convenience. The fast transfer characteristics of the Lightning Network allow you to quickly seize market opportunities and avoid the risks of price fluctuations. At the same time, the Passkey mechanism of the JoyID wallet provides you with a higher level of security, making you more at ease during transactions. The use of cross-chain bridges enables you to easily transfer assets from one blockchain to another, achieving cross-chain arbitrage.

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