Lately, lots of posts have been talking about how traders get rich from arbitrage opportunities in the crypto market. I have been trying to do arbitrage for months, but I could never obtain a profitable strategy. Therefore, I will tell you here the problems I found while attempting to do it. This might be helpful for those who are starting with it, so they don’t have to travel through the same painful path. Summarizing, here is what I found:
- Most of the arbitrage opportunities disappear after considering exchange fees and transaction commissions.
- Most of the arbitrage opportunities appear between exchanges where wallets are on maintenance, which makes deposits * and withdrawals impossible.
Transaction times between exchanges cause arbitrage to become a lottery due to market volatility.
You can keep reading my article here to find out how to build an arbitrage monitor from scratch with python and related useful information.