What’s arbitrage trading, and why should you try it?
Arbitrage is the process of purchasing and selling two equivalent assets simultaneously for a risk-free profit.
Crypto arbitrage trading is a type of trading strategy where investors capitalize on slight price differences of a digital asset across multiple markets or exchanges. In its simplest form, crypto arbitrage trading is the process of buying a digital asset on one exchange and selling it on another where the price is higher.
How can we arbitrage UTED tokens between multiple exchanges?
In the current market situation, it has become easy for our community to arbitrage UTED tokens between different exchanges. In this post, we are showing how arbitrage can be done between Centralised exchanges like WhiteBit and decentralized exchange SunSwap on the TRON network.
Step 1. — Setup.
To get started make sure you have the following:
- created an account on WhiteBit
- Have an external wallet like TronLink
Step 2. — Monitoring
Open up SunSwap and WhiteBit simultaneously.
https://sunswap.com/#/scan/detail/TKstdBzdwiwhPy6mz9cGDsyNrqJrTCyqoC
https://whitebit.com/trade/UTED-USDT?type=spot&tab=open-orders
When comparing those two screens we can see that the price on SunSwap, is lower than 0.0017 compared to WhiteBit buy order, which is 0.0018054.
This indicates, that it would be wise to purchase UTED tokens from SunSwap and sell the tokens on WhiteBit.
How to do it?
Initiate the trade on SunSwap. After receiving the tokens. Transfer the tokens over to the WhiteBit exchange.
NB! Please always double-check the wallet addresses, because tokens transferred to the wrong address cannot be recovered.
On WhiteBit, you can create a Sell order, that gives you the profit you are interested in receiving.
When someone purchases with that amount, you have made already a profit.
What to look out for?
When swapping on SunSwap, also take into consideration that there might be a slippage, that might affect the number of tokens released per trade.
Why are we sharing this? Our goal is to provide deeper insight to our community on different ways how to gain more benefits from holding and trading crypto assets.
