Low-latency arbitrage strategies in the crypto world: A guide to picking up money in 0.1 seconds.
Want to make stable profits in the crypto world? Low-latency arbitrage may be one of the most stable ways to 'pick up money'! Today, I will share several high-profit, low-risk arbitrage strategies, suitable for both beginners and experts~
1. Cross-Exchange Arbitrage (CEX vs CEX)
Principle: The same cryptocurrency (e.g., USDT) has different prices on different exchanges; buy low and sell high to profit from the price difference.
Key Points:
API Speed: Servers should be located near the exchange's data center to reduce latency (0.1 seconds can determine the outcome).
Fee Optimization: Choose exchanges with low fees (e.g., Binance 0 Maker/0.1 Taker).
Returns: 0.1%-0.5% profit per transaction; high-frequency operations can yield monthly returns of 10%-30%.
2. DEX vs CEX Flash Arbitrage
Principle: Prices between decentralized exchanges (DEX) and centralized exchanges (CEX) are not synchronized; leverage **oracle delays** for arbitrage.
Key Points:
Gas Fee Optimization: Use BSC or Solana chain when Ethereum is congested.
Slippage Control: Split large trades into smaller ones to avoid price fluctuations.
MEV Protection: Prevent being front-run by bots.
Case Study: Someone made $2400 arbitraging using 0x Protocol in 2 weeks.
3. Funding Rate Arbitrage (Perpetual Contracts)
Principle: Funding rates differ between exchanges; go long on high-rate platforms and short on low-rate platforms to profit from the difference.
Key Points:
4/8 Hour Settlements: Time your trades to avoid funding rate reversals.
Hedged Leverage: Amplify returns by 20-50 times (but the risk is also high!).
Liquidity Check: Avoid being unable to close positions during liquidation.
Case Study: B3USDT arbitrage, earning 0.5% over 4 hours.
Risk Warning
Gas Fees Surge: Arbitraging on the ETH chain may lead to losses.
Regulatory Risks: Some exchanges prohibit arbitrage.
Summary
Low-latency arbitrage = Technology + Speed + Risk Control.
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