It consists of buying a cryptocurrency at a lower price on one platform and selling it at a higher price on another, making a profit for the difference. This process requires speed to execute transactions, as opportunities tend to be short-lived due to high market volatility.
It is a strategy accessible to anyone and you can easily test it on platforms like El Dorado P2P. If you're interested in learning how to make money taking advantage of price differences between platforms, keep reading this article.
What does this strategy consist of?
It involves buying a crypto asset (such as Bitcoin or USDT) in a market where its price is lower and selling it in another where you pay more. The difference between the two prices, after the commissions have been deducted, represents your profit.
These types of operations have been used for decades in traditional markets, such as foreign exchange or stocks. In the crypto ecosystem, the volatility and variety of platforms make these opportunities available more frequently.
Benefits and risks of this strategy
Main advantages:
- It doesn't require complex technical analysis: you just need to understand how exchanges work, read order books, calculate commissions and trade quickly.
- Controlled risk: since one does not speculate on future prices, but rather one acts on current differences.
- Possibility to automate: you can use tools or bots to execute operations more efficiently.
- Available for many cryptocurrencies: Bitcoin, Ethereum and also stablecoins such as USDT, USDC or DAI.
- It works even when the market is sideways or is bearish.
Risks or Disadvantages:
- It requires constant monitoring or reliable tools.
- Profits are usually small per trade. You need volume or capital for it to be significant.
- High commissions can reduce your margins if you don't calculate them properly.
- The price may change while you are doing the operation (slippage).
- Slow transfers between platforms can cause you to miss opportunities.
How does it work?
The key is to detect price differences between platforms. For example, USDT can be worth $0.995 on one exchange and $1,005 on another. Although the difference seems small, it can represent a real gain if you trade with discipline.
Types of strategies with price differences
Cross-platform
You buy on a platform where the price is lower, you transfer the funds to another where the price is higher, and you sell there.
- Example: You buy 1000 ARB on one platform for $1.50 → You sell them on another for $1.55 → Estimated profit: $50.
Between regions
Some differences occur by geographical location. For example, a crypto may be worth more in one country than in another, due to local demand or exchange restrictions.
Between multiple currencies
You can take advantage of prices using three cryptocurrencies. You buy one, exchange it for another, and then for a third, closing the cycle with a profit if prices allow it.
How to get started?
- Check prices on platforms such as El Dorado P2P and others.
- Calculate commissions, transfer times and costs per network.
- Buy where it's cheapest.
- Sell where the price is higher.
- Withdraw your profits to a wallet or keep them in USDT or the crypto of your choice.
How to maximize profits and reduce risks?
- Do your research before trading: compare exchanges, fees and liquidity.
- Use secure platforms with a good reputation.
- Automate if you have experience, or test manually with little capital.
- Always check commissions before executing any trade.
