Disclaimer: Arbitrage trading involves risks, including technology failures, exchange fees, and price volatility during asset transfers.
His algorithm, ArbCore , was calculating transfer time, gas fees, and the risk of price slippage. An opportunity lasting longer than a few seconds was a luxury in high-frequency crypto trading. Elias saw the spread widen.
It was 0.05% of his capital, multiplied by the velocity of speed. But it was risk-less profit. As the arbitrage closed, the price difference narrowed. The market inefficiency evaporated. The ArbCore bot immediately began scanning for the next gap. thearbitragetrader.com
The arbitrage trader’s life was not in the big bets, but in the micro-seconds.
Elias watched the two screens. The data flickered rapidly. On the left, CoinbasePro showed BTC at $20,020. On the right, Gemini flashed $20,000. This was a two-dollar difference. Retail investors often ignored it. However, for Elias, this was the "phantom spread." Elias saw the spread widen
The process is similar to the first technique but requires some extra steps. You can find a lower-priced token on the Spot market, Facebook·Binance WORD OF THE DAY 📚 Arbitrage - Facebook
The script bought 5 BTC on the lower exchange. It simultaneously sold it on the higher one, exploiting the inefficiency. The screen showed red for a fraction of a second. This was the cost of moving the assets. Then, the green numbers appeared. As the arbitrage closed, the price difference narrowed
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