Today we are going to talk about a very simple method to earn $100 daily with crypto without needing any trading knowledge.
So, watch this video till the end so you don't miss anything.
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The technique we are going to talk about today is crypto arbitrage. As you know, several exchanges allow you to buy or sell crypto. Naturally, you would think that the price of crypto is the same on all exchanges, but in reality, this is not the case. You will always see slight variations in price from exchange to exchange, as the price is largely dependent on supply and demand.
Because the price of crypto is different from one exchange to another, very often we have trading robots that will do arbitrage by buying crypto on one exchange and selling it on another.
In the same way that robots do this, you too have the opportunity to exploit this loophole and buy cryptos on one exchange and sell them at a higher price on another exchange.
This arbitrage technique was applied by Sam Bankman, the founder of FTX, who succeeded a few years ago in building a fortune of $9 billion simply by buying cryptos on a European exchange and selling them on a Japanese exchange.
Additionally, on January 9, 2018, the price of Bitcoin in South Korea was 43% higher than in the US.
If you had a way to buy $100,000 of BTC in the U.S. and sell it on Bithumb without fees, exchange rates, or delays, you could have pocketed $43,000. This is the financial tactic of arbitrage: buying an asset and selling it immediately at a higher price for a very low-risk profit.
As another example, on November 28, 2019, BTC broke the $10,000 mark, but not on all markets. While the CEX quoted BTC at $10,026, Kraken quoted it at $9,748.
If you had a way to get fiat from your bank account on Kraken, buy BTC with that fiat on Kraken, transfer that BTC to CEX, sell that BTC on CEX, and get that fiat back from CEX to your bank account - all instantly and without fees - then you could have made a return of over 2.8% immediately with very little risk.
To practice arbitrage, you will only need three things: curiosity because you will have to do research, patience because sometimes you will do a lot of research and not find anything interesting and finally speed.
When you find crypto that has a completely different price from one exchange to another, you need to react very quickly to buy it, transfer it to the second exchange, and sell it again. This arbitrage technique is one that most institutions have applied recently, during the correction of some stablecoins in May. There were quite a few stablecoins that had lost their inking, and no longer matched their base price. So, a lot of people bought these stablecoins at $0.96 to $0.98 and sold them for $1.00.
You may think that $0.2 or $0.4 is a small amount, but imagine if you invested, let's say $100,000.
Within a few seconds, you would have made over $4,000 safely. Your $100,000 is safe because your transaction will only take a few seconds.
And now imagine that with the $100,000, you do it again and again until the Stable coin finds its balance. In one day, you'll be a millionaire.
But we are not saying that this technique is without risk. We are just saying that the risk is very low compared to conventional trading.
Now you too can apply this method to create a daily passive income.
The first step to practicing arbitrage is to register on as many exchanges as possible. Of course, you need to register on the most famous exchanges like Binance, KuCoin, FTX, Coinbase, Gate.io, Huobi, Bitfinex, and many others.
The second step is to go and get the cryptos one by one on coinmarketcap. So there, depending on your patience and what you want, you can spend 1 hour there. You can spend 2 hours or you can spend the whole day.
So, for this video, we're going to take one at random. For example, we're going to take uniswap. There, you go to coinmarketcap, at the bottom of the page, you'll see the list of exchanges that it's available on.
Considering the pair UNI/USDT for example, you will see that the price is different on all exchanges.
At the time of this recording, UNI is worth $5.41, with a price difference between the most and least expensive exchange of about $0.20. Now, suppose you buy 8,000 UNI tokens on Binance, it will cost you $43,280.
Then you sell them on Coinbase for $5.61, you will have turned your $43,280 into $44,880. That's a difference of $1,600 in one transaction and just a few seconds.
You repeat the process again and again as you find new opportunities. In just one day, you'll build a fortune.
To summarize, to make the arbitration;
Step one: You sign up for several exchanges.
Second step: You search on coinmarketcap, crypto with acceptable liquidity. Then, you observe the price differences of this crypto on different exchanges, and you select the exchanges with the biggest price difference.
Then you buy the token on one of these exchanges that has the lowest price, and then you sell it on the other exchange. Of course, in this process, speed is of the essence. So, preferably, choose cryptos that are on blockchains with the fastest transaction speeds, and the lowest transaction fees. These can include Solana, Tron, and more.
Another very important thing to know is that, very often, on the big cryptos, you won't see significant price differences to allow you to trade up. However, if you look at some of the lesser-known cryptos, you're going to find some very interesting things.
Crypto trading of any sort must be done with care and proper risk management. The Crypto arbitrage business is one of the least exploited crypto opportunities and this is because people lack knowledge on how to successfully carry out this business. Knowing the factors on which the crypto arbitrage business is dependent will help you position yourself very well. You need to choose the strategy that works well for you and with the right strategies and steps, you can make a lot of profit from this business model.
Crypto arbitrage can be quite complex, especially if you are not fast enough to make a trade. But don't worry. If after watching this video, you don't feel like you can do it, then we recommend using arbitrage bots. There are specialized bots that perform trades in a fraction of a second. This way, you can be sure that you can complete your transaction quickly and successfully. This way, you will be more reassured because the bot does everything for you.
We have already made other videos on crypto arbitrage. In particular on the different crypto arbitrage bots. The link is in the description. And if you want a video dedicated to each bot, feel free to let us know in the comments and we will be happy to make them for you.
We hope we were able to provide some value and helped you to move a step ahead in your crypto journey Be sure to check out our Crypto Brand called Cryptopreneur, get yourself the highest quality Crypto Merch available right now on the market, and make sure to subscribe so that you don't miss out on any of our content. Till next time, Goodbye.