Everyone wants to earn extra money on the crypt, but not everyone knows how. One of the ways to make money in this area is arbitrage. By the way, this type of activity has flourished widely in Georgia, in particular in Tbilisi and Batumi. In this article, we will tell you what crypto arbitrage is, how to get there, and why it has become so popular.
Cryptocurrency arbitrage is a strategy for earning money with a quick purchase and sale of cryptocurrencies on platforms and exchanges, where there is a noticeable difference in price. The very essence of arbitrage lies in the rapid response to price fluctuations in the market. When you can win in a short time on the difference in the rate on different exchanges. This situation occurs when someone has already managed to respond to an increase or decrease in the price of a certain crypto asset, and someone else has not.
The most important factor in crypto arbitrage is the speed of response. Since the gap in prices for assets with a large difference lasts a very short time, the arbitrage specialist needs to have time to buy a crypt on an exchange with a low rate and immediately sell it at a higher price.
Arbitrators are a kind of "orderlies of the forest." First you need to explain what the essence of their work is. Conventionally, the arbitrageur has 1000 USDT tokens at a price of $1 each. Since he constantly monitors several exchanges, he saw that, for example, in the WTC Exchange, the price of USDT rose to 1.2$. He quickly sells the available tokens and has a profit of $200.
Why are affiliates “forest orderlies”? They naturally smooth out prices in the market, thus influencing the buy/sell price.
Each professional arbitrage specialist has a number of exchanges and platforms, the prices of which he monitors in real time. After all, as we noted above, the speed of response is the main key to the success of this profession.
There are several ways to make money on crypto arbitrage.
In the first case, this is a standard purchase of an asset on one platform and a sale at a higher price on another. This crypto arbitrage method is called Cross-exchange arbitrage.
In the second case, there is a purchase and sale of cryptocurrencies on the same exchange. Such a specialist receives earnings due to the difference in prices between different cryptocurrencies. This is triangular arbitrage.
Spatial arbitrage provides for earnings on the same crypt due to the difference in the exchange rate in different regions. But here you need to take into account commissions and conversion rates of international currencies in countries.
The arbitrageur always needs to take into account the fees on the platforms he works with in order to account for all costs during the exchange. In addition, it is worth cooperating only with those companies that will definitely pull the amount of the exchange resource. And you should always remember that the main trump card of an affiliate is his speed!
In 2023, Georgia has become the most attractive place for affiliates to live and work, due to the legislative system loyal to crypto. Our WTC Exchange office in Batumi has become a real center of the community of arbitrageurs, where you can always buy and sell crypto at a favorable market rate, quickly and in the required amount!