I'm not talking about the typical arbitrage you see on exchanges like Bybit or P2P platforms. I'm focusing on spot arbitrage trading. Some folks say they make money from it, but I'm curious about opinions on spot arbitrage in 2026. Is it still a viable strategy or has it become harder due to price similarities across exchanges?
Profitable spot arbitrage is pretty rare these days. You might find a coin priced low on one exchange and high on another, but often the exchange with the lower price has withdrawals suspended, so you're stuck.
You can still make some cash with this method. Just need to keep an eye on price spreads and trading volumes. If one exchange has low prices but high volume, you can sell fast. But if another exchange has a high price with low volume, be careful.
Exchanges have really improved over the years. I remember trading on a platform with low liquidity and volume for some altcoins, but places like Binance and MEXC are different now. I haven't dealt with big bucks, which might be why I haven’t seen major issues.
You can test this with a small-cap coin. Selling on Binance usually goes smoothly, but transferring to MEXC might lead to price drops or unfilled orders.
I haven't faced that on MEXC, but you mentioned small market caps. If the coin's volatile, it might tank before you can sell on MEXC after transferring from Binance. You could be right.
Spot arbitrage hasn't piqued my interest. People say it's less risky since prices move slowly, but risks still exist with fees and transaction delays. Just wondering how those who do it manage to profit.
This used to work great, especially with Korean exchanges having higher prices. But regulations tightened, and now prices across exchanges are almost the same, reducing opportunities.
But what if you’re not even trying to arbitrage? Just want to sell a coin for personal reasons? It feels unfair for exchanges to penalize you for low liquidity. They seem to exploit users.
I agree. Arbitrage opportunities are dwindling. Most DEX platforms now are sketchy, and you could get rekt. Not worth the risk if the price differences are minimal.
Good point about the difference between general arbitrage and spot arbitrage. I see scams claiming high prices, but true spot arbitrage has slim profits now. The market's too close.
Exactly. Exchanges have risk controls that flag transactions. If you do arbitrage a few times, it’s fine, but if you keep exploiting it, you'll get flagged.
Main issues are limited exchanges and high fees. Some altcoins like LTC and TRX are better for this, but they can be sensitive to price changes, making it challenging.
Arbitrage is a race. There are people glued to their screens 24/7 for opportunities. I’d rather focus on delta-neutral strategies than chase arbitrage.