Profit from currency conversion through price differences, commonly known as arbitrage.
The idea is simple: buy a digital or fiat currency from a market or platform where the price is low, and sell it in another market where the price is higher, to profit from the difference.
I will explain the steps and fundamentals:
1. Types of Arbitrage
A) Inter-Exchange Arbitrage
Example: You find Bitcoin on platform A at a price of $65,000, and on platform B at a price of $65,300.
Buy from A and sell immediately at B, earning the difference.
B) Triangular Arbitrage within the same platform
Occurs between different currency pairs.
Example: USDT → BTC → ETH → USDT
If the final ratio is greater than the original capital, there is a profit.
2. Requirements
Active accounts on more than one platform (like Binance, KuCoin, OKX...).
Sufficient capital to cover differences and fees.
High execution speed because opportunities disappear within seconds.
Live tracking of prices or using automated bots.
3. Factors Affecting Profit
Fees: Withdrawal and deposit fees + trading fees.
Time: Delay may lose the opportunity.
Liquidity: If the trade volume is small in the market, you may not get the full amount at the desired price.
4. Numerical Example
Buy 1 BTC from platform A at a price of $65,000.
Withdraw or sell directly on platform B at a price of $65,300.
Profit = $300 − (trading fees + conversion fees).
5. Alert
Some countries impose restrictions on transferring money or currencies between platforms.
Basic Risk: Price change before completing the transaction.
It is advisable to start with a small capital for experimentation before increasing investment.
