I've been thinking for a while about trying something new in trading. I've accumulated so much theory but little practical experience. So I decided to explore cryptocurrency arbitrage — is it really a viable way to make money or just a myth?

The idea is simple: buy crypto cheaper on one platform, sell it at a higher price on another, and pocket the difference. It sounds logical, but why do these price differences even occur? It turns out that the same asset can have different prices on different exchanges. The reasons are straightforward: varying demand and supply, delays in updating quotes, local laws, and economic conditions in different countries.

Now I’m confused — it turns out there are several types of arbitrage. Inter-exchange arbitrage is the most obvious: buy on one platform and sell on another. For example, buy ETH on a major exchange, transfer it to another, and sell for a higher price. But there’s also intra-exchange arbitrage, where you play with different trading pairs on the same platform. Like ETH/USDT being cheaper than converting through ETH/BTC, then exchanging and earning the difference.

Then there’s triangular arbitrage — it’s like solving a puzzle. On one exchange: convert USDT to BTC, then BTC to ETH, and finally back to USDT. If prices aren’t synchronized, you can end up with a profit. Regional arbitrage is also interesting — buy on an international exchange and sell locally via P2P, profiting from currency differences.

Where to start? First, create accounts on several platforms — I’ve already done that. Then fund your accounts, preferably with stablecoins like USDT or USDC, to avoid volatility. Next, you need to monitor prices — there are specialized websites and bots for this. But the main thing is to account for fees! If you don’t consider all deposit, withdrawal, and exchange fees, you can easily end up in the red instead of the black.

Another important factor is transfer speed. While transferring crypto from one exchange to another, prices can change, and your profit can evaporate. I’ve noticed that networks like TRC-20 or BSC are faster, so they’re more convenient for inter-exchange arbitrage.

Here’s a simple example: BTC on one platform costs $96,000, and on another, $96,100. Buy cheaper, transfer, sell higher — that’s $100 profit. Of course, minus fees. That’s pure inter-exchange arbitrage.

But there are pitfalls. Fees can be so high that they eat up all your profit. Transfer delays ruin the math. Some exchanges limit withdrawal amounts. And there’s always a risk of suspicion for suspicious activity or regional restrictions.

So, is arbitrage really effective, or am I missing something? I’d like to hear opinions from those who have already tried. Are there any hidden pitfalls I haven’t considered?