DEX/CEX cryptocurrency arbitrage

CEX (from English Centralized Exchange) is a centralized exchange. These are exchanges that are managed by real people (teams and companies). When working with CEX exchanges, you give control of your crypto assets to these organizations.
Disadvantages: possible sanctions, bankruptcy, account blocking.
Pros: there is technical support. If you have problems, they can help you.

DEX (from English Decentralized Exchange) is a decentralized exchange. These are exchanges that are controlled by software code (smart contracts) within a single blockchain. When working with DEX exchanges, you give control of your crypto assets to a smart contract.
Cons: no technical support. If a mistake is made, funds cannot be returned, because... this is program code.
Pros: full control over your funds.

Spread (from English Spread) - the difference between buying and selling.

The essence of the work is to buy cryptocurrency on the DEX exchange and sell it on the CEX exchange, or vice versa.

DEX and CEX systems differ radically in speed.

Blockchains (DEX) do not work very quickly and the technical difficulties of interacting with them make it possible for a living person to build arbitrage trading between DEX and CEX.

Unlike the CEX-CEX and DEX-DEX directions, where spreads are usually closed programmatically.

We match liquidity pools with different trade amounts so traders can diversify their trading, for example:

• Instead of risking all your capital, it is safer to buy at $200-500.

We usually check prices for the following volumes:

• For all networks:
• 200 USDT (or USDC or another $)
• 1000 USDT (or USDC or another $)
• 2000 USDT (or USDC or another $)
• 5000 USDT (or USDC or another $)
• For BNB:
• 0.5 WBNB (≈ 305.835 $)
• 1 WBNB (≈ 611.67 $)
• 5 WBNB (≈ 3058.35 $)
• For Ethereum/Arbitrum:
• 0.2 WETH (≈ 627.526 $)
• 1 WETH (≈ 3137.63 $)
• For Polygon:
• 200 WMATIC (≈ 0 $)
• 500 WMATIC (≈ 0 $)
• 1000 WMATIC (≈ 0 $)

Therefore, based on the higher volumes, we can say that the recommended minimum deposit size is from $200 for 1 transaction.

The Ethereum network requires significantly larger deposits to cover all fees.

If you need personal prices for your volumes, write to tech. support.

We noticed that the best time to work with DEX/CEX arbitrage is:

• In volatile moments when coins rise or fall sharply.
• At the morning opening of American stock exchanges.

Ethereum is not suitable for beginners! If you are just learning DEX arbitrage, then avoid Ethereum until you have established trading on other low-cost networks.

The Ethereum network is very expensive, and enrollment on the CEX exchange often takes 20-30 minutes. During this long enrollment period, the course may change significantly. Therefore, such mistakes can cost up to $50-100.

Our system calculates commissions, but the network often changes the average cost of gas. Therefore, be vigilant with Ethereum and enter only into transactions where the income will be from $100 (the higher the cost of an error).

Beginner arbitrage traders are often intimidated by small spreads.

For example, the fast BSC network often allows you to complete a transaction (buy on DEX, deposit on CEX, withdraw from CEX) in 10-20 minutes.

Therefore, if the average transaction brings in $1, then in 1 hour you can earn $3-6. For an 8-hour working day - $24-48.

At the same time, when you work for $1 regularly, you have the opportunity to quickly react to a new signal and work out a large spread.

Spreads with possible earnings of $50 or more per trade are rare. But in favorable volatile times, you can very well increase your capital in a few hours.

Popular ways to lose money in DEX arbitrage:

1. RARE: Send tokens to someone else's address.
2. FREQUENTLY: Send tokens to a CEX exchange that it does not support.
3. FREQUENTLY: Send tokens to a CEX exchange on a network that it does not support.

Each token is, first of all, a smart contract! The smart contract has an address! Exactly the ADDRESS! Not the ticker name.

The name of the ticker on CEX exchanges does not in any way indicate the identification of the token. The same token can be the same and yet have different tickers on different CEX exchanges. Or vice versa, the same tickers have different smart contracts.

Before making a transaction, always check the following points:

• Blockchain
• Smart contract address
• Deposit option
• Min. deposit size

• You should always make your first trades with money that you are willing to lose. Especially on a new, unfamiliar exchange.
• Never conduct transactions with 100% of the deposit. It is best to work max. 20-30% of your deposit. This will allow you not to lose all your funds and process new, more profitable signals in parallel.