Cryptocurrency arbitrage: complete guide

How to profit from price differences across exchanges

Imagine Bitcoin is $60,000 on one exchange and $61,000 on another at the same moment. Cryptocurrency arbitrage is profiting from such temporary price gaps: you buy the asset where it is cheaper and sell where it is more expensive, keeping the difference. Because of high volatility and a fragmented market (hundreds of exchanges operating independently), crypto offers many arbitrage opportunities. Our service helps you find them faster.

How does cryptocurrency arbitrage work?

The mechanics are simple in theory but harder in practice. Basic steps:

  1. Finding the gap (scanning) — monitoring prices across exchanges in real time. Doing this manually is nearly impossible, so scanners like our service are used.
  2. Spread analysis — calculating the percentage difference between buy and sell prices. It is important to look not only at price but at depth (liquidity) in the order book.
  3. Execution — buying the coin on exchange A and selling on exchange B.
  4. Locking in profit — net profit = price difference minus fees (exchange and network) minus slippage.

Main types of cryptocurrency arbitrage

Not all strategies are the same. Three main categories you can implement with our service:

Spatial (cross-exchange) arbitrage

The most common type: the same coin (e.g. Ethereum) on two different exchanges (Binance and Bybit). Pros: clear logic, many opportunities. Cons: you need funds and accounts on both exchanges, and must account for transfer time if you do not have balance on both.

Triangular (same-exchange) arbitrage

Price inefficiencies between different pairs on one exchange. Example: USDT → BTC → ETH → USDT; if the final USDT amount is higher than the initial, the triangle worked. Pros: no need to move funds between exchanges (fast, no withdrawal fees). Cons: opportunities last fractions of a second; speed is critical.

Fiat–crypto arbitrage

Buying crypto for dollars or euros on a P2P platform or via payment systems and selling on the exchange spot market, or the reverse.

What are the risks? (Important to read)

Arbitrage is not risk-free. Main pitfalls:

  • 1. Technical delays (withdrawal time) — while you transfer coins from exchange A to B, the price on B can drop and the spread (profit) can disappear.
  • 2. Fees: withdrawal fee (fixed amount per withdrawal — with a small spread it can eat all profit), network fee (gas, especially on networks like Ethereum at peak times), trading fee (taker/maker, often around 0.1%; on both sides it adds up).
  • 3. Low liquidity — an attractive price with thin order book depth means you may not be able to buy or sell the needed amount without slippage.
  • 4. Network unavailability — there may be no common networks between two exchanges, or a network may be unavailable. Always check this to avoid losing funds.
  • 5. Exchange risk — holding funds on many exchanges increases the risk of losing capital in case of a hack or exchange issues.

Why is our service useful for arbitrage?

Our tool addresses several arbitrageur needs: real-time pair discovery and network/fee checks.

  • ● Instant scanning — real-time price updates across major exchanges.
  • ● Fee accounting — the calculator shows potential profit after exchange and network fees.
  • ● Liquidity filter — you can filter out low-volume opportunities to avoid the “empty order book” trap.

Getting started (step-by-step)

  1. Register on 2–3 reliable exchanges (e.g. Binance, Bybit, OKX).
  2. Fund your accounts. For fast spatial arbitrage, keep some capital in USDT (or another stablecoin) on each exchange you use.
  3. Learn our scanner interface. Start by looking for spreads on the most popular coins (BTC, ETH).
  4. Start small. Do not chase huge percentages. A 1–2% spread with good volume is a good way to learn the mechanics and fees.
  5. Keep a log. Record your trades: where you bought and sold and at what price, fees, and any issues. This will help you improve over time.