It is common to see users analyzing only the intermediation fees, but they forget about the risks when using an exchange that is not properly registered in the country. There is a history of brokerages that blocked withdrawals for more than a week, and others that suffered attacks (hacks) generating losses.
During strong fluctuations in the market, it is common to see some brokers with unavailable systems, making it impossible to trade. In the Bitcoin Market, security is the main concern.
Is all Arbitration Profitable?
Not necessarily. This must include the brokerage of exchanges, any fees for redemption of the fiduciary value, in addition to the fees charged by the miners to rebalance the reserves when necessary.
Even profiting, the user who disregards the cost of transferring cryptocurrencies and withdrawing may end up at a loss.
Another risk that must be considered is the delay in sending orders to one of the brokers. A matter of a split second can result in partial execution, leaving a balance in the order book. In this case, there is a risk of loss, as it was not possible to carry out the purchase and sale simultaneously.
Can Only Big Customers Arbitrate?
No way. In the Bitcoin Market it is possible to make cryptocurrency trades starting at very small payment. In this way, you can buy and sell a fraction of the cryptoactive, for example, 0.10 Litecoin (LTC).
As mentioned, arbitrators leave cryptocurrencies and values at rest on various exchanges, thus avoiding the need to carry out daily transfers.
The same procedure is valid for the Fan Tokens of football teams, decentralized finance cryptoactives (DeFi), among others. All the user has to do is follow the quotes to find any differences that are sufficient to cover the fees.
It is worth remembering that transfers to Bitcoin Market addresses are immediate and do not have a fee.