Profitable Arbitrage Trading Steps

Sep 23, 2024

Arbitrage Trading Tutorial

Overview

  • Topic: How to make 5 USDT using arbitrage trading on Trust Wallet
  • Objective: Utilize price differences in cryptocurrency markets to make a profit.

Key Concepts

  • Arbitrage Trading: Exploiting differences in the prices of a particular cryptocurrency across different platforms.
  • Trust Wallet & Binance: Platforms used to execute the arbitrage strategy.
  • Binance Smart Chain: Chosen for its low blockchain gas fees, making transactions cost-effective.
  • BNB (Binance Coin): Used for transactions due to its low fees.

Steps for Arbitrage Trading

  1. Identifying Price Differences:

    • Use CoinMarketCap to identify price differences in cryptocurrencies.
    • Focus on the 'Platform' section, particularly the Binance Smart Chain.

  2. Selecting a Coin:

    • Example used: INJ (Injective Protocol).
    • Check its price on Trust Wallet and Binance.
    • Example price difference: Trust Wallet ($18.28) vs. Binance ($18.36).

  3. Executing Trades on Trust Wallet:

    • Import Coin:
      • Copy the BEP20 contract address from CoinMarketCap.
      • Import it into Trust Wallet to ensure authenticity.
    • Deposit BNB:
      • Use BNB for transaction due to low fees.
    • Connect to PancakeSwap:
      • Find PancakeSwap via the Discover button in Trust Wallet.
      • Connect PancakeSwap as a third-party application.

  4. Using PancakeSwap for Trade Execution:

    • Switch network to Binance Smart Chain.
    • Set trading pair: BNB to INJ.
    • Slippage Tolerance:
      • Set to 0.5% to ensure trade execution even if price fluctuates slightly.
    • Execute the swap.

  5. Completing the Trade:

    • Once INJ is in Trust Wallet, transfer it to Binance using the BEP20 address.
    • Sell INJ on Binance at a higher price.
    • Example profit: $0.50 to $0.70.
    • Repeatability:
      • The process can be repeated to increase profits over time.

Conclusion

  • Profitability:
    • Arbitrage trading is a repeatable process that can gradually increase profits.
  • Additional Note:
    • Sports trading signals and more arbitrage strategies are available in the video description.

Final Tips

  • Like and subscribe to the channel for more tutorials.
  • Arbitrage trading can be profitable if done consistently.

Ensure to practice risk management and verify all transactions to avoid losses or potential scams.