in Cryptocurrencies

Crypto arbitrage

Lots of my friends ask me if I am in crypto. What do they usually mean, when they ask this ‘if i am trading cryptocurrencies’. And the answer is no and i do not recommend doing this to any of my friends.

I did cryptocurrency buy/sell in a period of 20 days and doubled my money, but I saw this is too dumb/risky for me. Then i noticed that the prices for cryptos differ in exchanges. For example it was very common that BTC was 10% more expensive in South Korea than in USA. At some point it was even 43% arbitrage.

As Korea was quite inposible to make arbitrage due to foreign exchange regulations i checked Polish exchange and found that there was 5% arbitrage possible.

So what i did:

  1. purchased crypto in Kraken for €
  2. moved crypto to polish exchange /
  3. sold crypto for PLN
  4. moved PLN to Paysera account.
  5. exchanged PLN to €
  6. deposit € to Kraken
  7. Repeat

This had very minimal risk. I was owning crypto for a max period of 2 hours. (Bitcoin cash was moving 2 hours on average between exchanges. ETH, BTC moved in ±15 minutes). Polish exchange after all the fees generated on average 5% arbitrage.

The arbitrage appeared regarding to two conditions:

  1. it was difficult to open crypto accounts.
  2. some markets (Korea, Poland, Thailand) wanted crypto ‘more’ and were willing to pay a little bit more if they could pay in their currency.

I did this arbitrage for 2 – 4 weeks on those margins. After that the margins dropped. I created scripts that took prices from different exchanges, calculated the arbitrage and send me a notification when there was arbitrage – therefor i was able to work on the margin of 1%. Starting from March i was not able to make even 1%

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