The rapid development of the financial market in terms of increasing the variety of available assets and instruments has inevitably led to the fact that many people want to receive passive income on exchanges. This is quite real. It is especially promising today to exchange cryptocurrency. There are various ways to make transactions involving such an asset, one of the most effective is arbitration.
The main goal in arbitrage trading is to gain benefits based on the divergence of the rates of various cryptocurrencies within the same exchange or on different exchanges and markets. That is, you view the current rates of cryptocurrencies on different exchanges, find those offers for your chosen cryptocurrency, where the price on the exchanges is lowest, make a purchase transaction. At the same time, you find an offer on exchanges where the rate is higher, and immediately sell the newly acquired asset. The difference in the rate will be your profit with p2p. The main thing is to have time to do everything in the shortest possible time, so as not to miss the opportunity to get exactly the amount of profit thanks to p2p, which you are already counting on.
p2p involves transactions involving 2 traders. That is, the currency is transferred directly from one person’s account to another’s account. Literally translated, p2p, that is, peer-to-peer, means peer-to-peer operations.
Absolutely any trader, both experienced and novice, can make such transactions on exchanges. Special platforms on which p2p trading is carried out significantly simplify the whole process and provide a higher level of security when using the p2p method than if you personally do it exclusively through the general Internet. Moreover, many practical tools for p2p are offered on special platforms and exchanges, and in some companies they are unique or simply work better, for example, which even allow you to automate the process and eliminate irrational time spent on work. After all, in any case, it is time in the end that is the most valuable resource, on which the amount of profit directly depends.
Since p2p arbitrage is gaining more and more popularity, before you start trading crypto or other assets on exchanges in this way, you will have to understand the nuances, get the necessary knowledge and skills about p2p trading, as well as practical experience. For example, in order to reduce the risk of unprofitable and frankly fraudulent transactions, it is recommended to take into account the opinion of more experienced p2p traders, which they share on thematic forums of trading in the financial market. Including how to organize cryptocurrency arbitrage more rationally, because digital currencies are at the peak of popularity today and steadily have an increase in price, despite constant fluctuations in the exchange rate and the influence of various internal and external factors.
There are several ways to start earning using this method:
Independently publish an announcement on the exchange about the sale or purchase of a specific currency, crypt. The reach of a larger audience will be if you set a certain price range on various exchanges. In any case, the price should be competitive in order to promote both the profitability of transactions and your positive reputation as a reliable, competent trader within one or more exchanges.
Search for ads for buying and selling. In this case, you personally need to choose on which exchanges it is more profitable to buy or sell a currency in a particular time period.
All these processes can occur both within the same exchange and different ones. In the first case, the commission amount will be lower, but you already need to have some experience in order to see the benefits in current offers.
The undoubted advantages of p2p
To make logical conclusions about how profitable p2p trading is in reality, it is necessary to systematize all the advantages of this method. This scheme provides the following advantages to traders:
a chance to receive a substantial amount of passive income in a very short period of time;
there are no boundaries in terms of profit limits with p2p, since operations can be carried out an infinite number of times, and there are no clear forecasts at what rate it will be possible to buy bitcoin or fiat currencies, other assets, and then sell them;
stable income with a competent choice of strategy, the ability to analyze, and if this direction is given a certain amount of time;
you can make transactions absolutely anonymously on sites that provide such an opportunity;
there is no binding to a specific schedule, it is possible to execute arbitration transactions at a convenient time for a person, making it the main source of income or an additional one;
very high level of security, the lowest level of risk;
the minimum amount of commission, and on some services it is completely absent;
the possibility of making transactions in various ways, many specialized sites provide several hundred options to choose from.
If necessary, you can exchange bitcoin both through special exchangers that work 24/7, as well as through a special service Exnode.ru to monitor all the current prices of each cryptocurrency in different crypto exchanges.
Separately about cryptocurrency arbitrage
Bitcoin arbitrage is a unique scheme when viewed in comparison with the same method applied to other assets:
The main difference is that digital currencies do not have a material basis, but at the same time they have a steady course for a stable price increase. Yes, there are significant drawdowns, but, as a rule, this is a temporary phenomenon, as a result, the course is still leveled. Moreover, this applies not only to such a currency as bitcoin, but also altcoins, Ethereum, litecoins.
The second point that must be taken into account when planning to sell cryptocurrency, buy it or exchange it is the lack of government regulation of prices, regardless of which country you are in and conduct transactions. The scheme of regulating the price of any cryptocurrency is an exclusively private relationship that works within the global market or within the borders of some country.
Based on this, the rate of the crypt changes regularly, and fluctuations in different directions can be observed for a short time period. And this gives a special advantage to those who have decided to give preference in arbitration in the direction of the crypt. After all, the essence of this tactic is precisely to have time to catch the difference in the exchange rate at different sites, on it and get your stable income when you sell it.
What else can be noted as a feature and advantageous advantage regarding how to sell bitcoin profitably is the presence of special bots and scanners in the arsenal of various financial instruments today. Such services are provided by various platforms, stock brokers. The main thing is to choose a bot correctly, taking into account the criteria of reliability, interaction with exchanges, the cost of services, intuitive and practical functionality, technical support and software updates. Another very important factor is the speed of information processing, because it affects how much you can and will have time to earn for a specific period when it is possible to find really profitable options for crypto arbitrage.
There is a folk wisdom that it is better to learn from the mistakes of others. In real life, everything turns out exactly the opposite. But still it is worth adopting useful information about the most common mistakes, so as not to take quite frankly banal steps on illiteracy:
Do not rush to too attractive and not quite real offers. With a high degree of probability, scammers will act, and, instead of the expected profit, you will receive only financial losses.
Before making any deal, read the reviews, find out the number of completed deals from your opponent. This way you will be less likely to get into a risky situation.
Always initially make sure that there is a payment confirmation, only after that you can transfer the crypt from the escrow service. Even better — to personally verify the availability of money in your wallet, you should not trust the screenshots provided about transferring money to you today.
A common situation is, for example, fraudsters offer to make a payment on another platform, to move there to communicate on the transaction. You should not do this, even if you are offered some kind of discount, since the history of your correspondence is still preserved on a reliable and proven service, there are security guarantees, representatives of the platform will be able to assist in case of problems with the transaction.
The last point concerns not so much the actual transactions and mistakes, but your reputation and a relaxing holiday as a person. Always disable your ads on the platform if you are not in active mode. Otherwise, your reputation may deteriorate, moreover, opponents may appeal if they do not receive funds in time. If you clearly know when you will return to the platform, set the time of the offline ad mode. So the restriction on availability will only be valid for a certain period, and you will immediately be able to make deals on preliminary offers as soon as you appear on the network.
It is already relatively safe to buy cryptocurrency today, as well as to make transactions on p2p arbitration. But still it is worth remembering the risks that are invariably observed in this direction:
be extremely careful when making transfers, always take into account the size of the commission, how profitable the deal will be in the end, since conditions at different sites may vary greatly;
always keep in mind the risk of losing a significant amount of money due to the volatility of cryptocurrencies, if you made a wrong forecast or did not make purchase and sale transactions quickly enough;