Guide to Arbitrage in the Cryptocurrency Market

99% of projects in the cryptocurrency space are centered around the idea that they package the core of the du field into dreams of changing the world, attracting a continuous stream of believers with the mindset of 'I am doing value investment' to engage in speculative du betting. If you have seriously looked at the technology/white papers/projects of different initiatives and have deployed nodes or participated in project development, you will surely understand what I mean; in fact, 99% of projects are garbage.

However, this also reflects the dividends of the cryptocurrency market. Because a large number of du enthusiasts are extremely insensitive to funding rates, interest, and various wear and tear, the neutral arbitrage strategies derived from this can easily achieve returns unimaginable in traditional finance.

At that moment in the market, merely the annualized return of USD deposits on exchanges was already around 20%, sometimes reaching about 70%. To some extent, this can be called the market's beta APR, with even more excess arbitrage ideas on top of that. However, before engaging in arbitrage, you must honestly ask yourself if you can rationally face the endless myths of instant wealth in the market. It is very normal to see 10x coins and 100x coins in the cryptocurrency space, and you can almost daily see someone claiming they have achieved financial freedom, or that someone has become an A9. Can you recognize that this is a zero-sum game and establish your own profit principles? This is the most difficult step.~

It should be noted that the aforementioned risk-free arbitrage is theoretically risk-free in terms of capital exposure, but it cannot exclude systemic risks such as major exchanges collapsing or stablecoins decoupling. Although the probability approaches zero, necessary risk assessment is still very important.

If you agree with my reasoning above and are aware of the aforementioned risks, I will briefly discuss a few of my ideas in the following chapters for reference and exchange~