Cryptocurrency arbitrage: is this activity legal in 2024, how to trade safely?

What is cryptocurrency arbitrage and is it legal to do it in 2023, what law governs risks, how to protect yourself.

Cryptocurrency arbitrage: is this activity legal in 2023 and what other risks are there?

Earnings on crypto arbitrage are now available to almost everyone. Experienced traders have learned how to use cryptocurrency arbitrage to earn money, but is it legal in principle, let’s figure it out. But initially, briefly about what crypto arbitrage is. The process of searching and finding the difference in the price of a cryptocurrency, and then earning on the spread, is the arbitrage of the crypto. Thus, the infrastructure of the market is developing.

The essence of the arbitration process

Typically, a trader uses the capabilities of special programs, the functionality of which includes market analysis, and links are also identified for crypto arbitrage. Often, those cryptocurrencies that are not so popular as to be in the top known are in demand. Comparing exchange prices, the screener bot automatically detects bundles.

Types of cryptocurrency exchange arbitrage

Inter-exchange arbitrage consists in comparing current prices on different exchanges. The general volatility of the cryptocurrency market is quite high, so the speed of trading operations is important. To avoid a lack of liquidity, it is recommended to trade on sites with large volumes and the maximum spread in bundles.

Important! There are a number of problems with inter-exchange arbitrage. For example, linkage and spread screeners work in slow motion.

Intra-exchange arbitrage

This method also has not lost its relevance. On large platforms, such as Binance, the cryptocurrency is traded according to a clear algorithm. A trader, in order to be in the black, needs to acquire special programs like the opexflow.com service, you can make a profit on small exchanges. “Triangular” arbitrage is different in that the trade is carried out with the help of three coins. More about intra-exchange arbitrage . The opexflow.com service helps both beginners and experienced traders with solving the problem of finding working links with the maximum spread. Thanks to a well-established algorithm, arbitration is successful. The procedure is completely legal and does not cause problems.

P2P arbitration

The trader benefits from the price difference by acting directly with the seller/buyer (without intermediaries). P2p platforms are used for transactions. The https://opexflow.com/p2p service is developing in this direction . There are a lot of opportunities for earning here. Peer-to-peer networks are characterized by the fact that a quick transfer of funds through payment systems is provided

Arbitrage risks and ways to bypass them in p2p trading

In general, arbitrage, subject to the rules of trading, is safe, but risks are still present. Risky transactions include those transactions that are associated with insufficient liquidity. Many people ask the question: cryptocurrency arbitrage in 2023 – is it legal, or not from the point of view of law? The process is legalized from the point of view of legislation, otherwise the exchanges would put a ban on this kind of activity. And this question arises in view of 115 FZ “on counteracting the legalization (laundering) of proceeds from crime and the financing of terrorism.” According to this law, an account can be blocked if the economic feasibility of your actions is not justified. You can prove the last fact, for example, with screenshots from the exchange about depositing / withdrawing funds. For those who want to study 115 Federal Laws in detail – click .How to make money on cryptocurrency arbitrage in 2023 – how it works and training

Operational risks

When transferring funds, you need to act quickly, otherwise you can miss the moment when there is a clear price advantage. In such situations, it is important to track links quickly and automatically: ] If the prices of cryptocurrencies are compared, there are practically no opportunities to earn money. It is also possible to go negative, losing part of the deposit.

The risk of insufficient liquidity due to the wrong link for arbitrage

Exchange quotes change so quickly that there may not be enough liquidity to make profitable transactions. In such a case, arbitration is inappropriate. It is better to calculate the commission amounts correctly so as not to overpay for depositing and withdrawing funds. The specificity of exchanges is such that rates change depending on the conditions, which entails losses for the trader.

Note! There are scams on exchanges.

Inexperienced traders take risks because they want to make money at any cost. However, that price turns out to be so high that the desire to work on the stock exchange disappears. The https://opexflow.com/ service works to track really working and liquid links . The site assists in trading by indicating the correct links. It is possible to achieve the efficiency of trading operations if you use the opexflow screener-scanner. The bundle allows you to get income here and now by playing on the price difference. This scheme includes the study of the spread between the prices of different cryptocurrencies within one or more used cryptoplatforms. It’s important to understand how it works. To this end, it is recommended to visit the service page opexflow.com, where after registration and completion of beta testing of the platform, training in the form of video lessons will also be available. Ligaments are permanent, that is, stably working. Momentary ligaments quickly appear and disappear just as quickly. It is optimal to use both strategies, taking into account the current state of the market and quotes.

Important! Dear users, please leave feedback after testing, what features should be added, what problems arose when using the opexflow screener and other wishes.

Earnings on cryptocurrency arbitrage — this is reality. However, the risks of loss must be taken into account. From a legal point of view, cryptocurrency arbitrage is legal, but not always safe. Traders should avoid fake exchanges with tempting but dubious arbitrage schemes and services that “guarante” huge profits. Beta testing and final debugging of the screener of bundles and spreads for arbitrage of opexflow cryptocurrencies is coming to an end – you can already apply right now, we will contact you as soon as there are free places.

Leave a request for testing after registration, the service is under development.