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Arb (Arbing, Arbitrage)

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What do crypto traders call arbing and how to do it?

Key Points

  1. What it is: jargon
  2. Tools that do it: #localcryptos #phemex 
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In the trading jargon, arb is short for arbitrage. This term is not specific to crypto.

Market traders call arbitrage a non-directional trading strategy that makes profit from different pricing of the same asset on different markets.

How to do basic crypto arbitrage?

  1. Find two crypto exchanges where cryptocurrency trades at different prices
  2. Buy crypto at the cheaper one
  3. Sell the crypto at the expensive one
  4. Withdraw your base currency

As a real-life example, the actual exchange-to-p2p arbitrage workflow includes having a stash of crypto on the (expensive) p2p exchange ready to sell and a stash of fiat on the (cheap) trading exchange ready to buy. Speeding up the process by selling different coin than what you buy at a specific price improves greatly the p2p trading experience.

Is arbitrage profitable?

The very early days of crypto trading were good for arbitrage even on bitcoin markets, because the liquidity was lower and markets were not as efficient. Since maybe 2018, it mostly does not pay to execute arbitrage trades manually. It is a low-risk low-profit game of numbers: If you can do it with 6 figures USD through a bot, it is still worth it. Other than that, not so much.

One notable exception to the rule are people with dual citizenship or some other legal rarity that gives them full access into two mutually disconnected markets.

Typically that would mean having a fully verified account on a “western” trading platform, complete with a local bank connection, and the same set up in a country like South Korea, India or Brazil.

Moving fiat money to and from these countries is not easy, the arbitrage opportunity is therefore stable.

Arbitrage as P2P reselling

On p2p marketplaces like LocalCryptos, cryptocurrencies trade 2-10% over market. Buying on an exchange like Bitstamp and selling P2P is a stable arbitrage opportunity.

Is arbitrage risk-free?


Arbitrage is a non-directional trade, but your money may get stuck at any point on its way and get you exposed to market volatility.

Best Tools for Arb (Arbing, Arbitrage)

Want to *really* learn crypto charting & technical analysis?

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Read our articles to get familiar with the tools, but try everything hands on. Trading will press your emotions, you can only really learn it as you go.

All the good crypto charting tools and platforms are accessible for FREE in either TradingView app or at Bitfinex. Just start!

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OBV: On-Balance Volume Divergence Crypto Strategies - On Balance Volume divergence trading made easier by transforming OBV into oscillator. Pine script available for free on TradingView.
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Script Spotlight: A/D Levels - In this series we are picking and reviewing TradingView scripts for technical analysis that recently popped up in the daily popular feed.
Multiple time frame analysis: Trading several timeframes at the same time - On why it's constructive to trade multiple time frames at the same time and how to manage the stack of your positions and orders.
Scalping Crypto (Reworked for 2021 Crypto Markets) - All about crypto scalping - the tools you need, the cryptocurrencies to prefer, the exchanges that will not crash on you.