Infy

Infy

13-08-2022

12:58

I made over $15,000 arbitraging cryptocurrencies in May. I did not have: • 200 IQ • Advanced knowledge • Complicated paid tools Let me break down the basics for you. (Free guide below) 🧵

1/ Want to learn how to arbitrage cryptocurrencies and need someone to hold your hand? I am your guy. Here’s what we will be going through: 1. Identifying opportunities 2. Calculating spreads 3. Swap and bridging walkthrough 4. Example trades Ready to learn? Let’s go.

2/ Identifying opportunities - Concept We are looking for price mismatch in money markets. This can occur: • Cross chain • Same chain • Centralized exchange VS Decentralized exchange Let’s focus on cross chain arbs.

3/ Identifying opportunities - Cross Chain Use a charting tool like @dexscreener . Search for a token that is trading across multiple chains with different liquidity amounts.

4/ Identifying opportunities - Price Mismatch Look for potential arbs when price mismatch happens. (I picked extreme examples to demonstrate the point) Notice that the price on BSC at this time point is $0.03332. While the price on Polygon is $0.04324.

5/ Calculating spreads So you have identified an opportunity. But is it worth it? Let's calculate the spread. Binance Smart Chain BUY price $0.03332. Polygon SELL price $0.04324. SELL / BUY - 1 = Spread $0.04324 / $0.03332 - 1 = 30% (This spread is extremely rare)

6/ Quick trade walkthrough We have identified: ✅Price mismatch ✅Large spread Trade with 4 steps: 1. BUY on BSC with @FinanceFirebird 2. Bridge BSC to Polygon with @wormholecrypto 3. SELL on Polygon with @FinanceFirebird 4. Bridge USDC back to BSC with @MultichainOrg

6/ Pre-trade checklist Important tips: - Watch how long the price mismatch lasts - Send a test trade to get the process down - See if you can complete the entire transfer at a competitive rate and time - There should be enough volume per day to be worth your time

7/ Example trades Here are some examples of both winning and losing trades:

8/ Bonus material You can identify price mismatch with @coingecko across multiple CEX and DEX. Best to compare the live price by going to the actual CEX and compare to DEX prices on @dexscreener Trade goes like this: Swap on DEX > Deposit > Swap on Cex > Withdraw to DEX

9/ You don’t need 200 IQ to arb profitably, you just need to learn the basics: 1) Identify opportunities 2) Calculate spreads 3) Execute trades Bonus tip: Volume and volatility are your friends. Without these, the spreads and trading opportunities won't be worth your time.

Enjoyed this thread and found it valuable? Retweet the first post and share it with a friend. This is part 3 of a 5 part series on arbitraging cryptocurrencies. If you would like to learn more, follow me at @omgitsinfy and turn on notifications.



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