Hi guys, i'm thinking about making an arbitrage bot but i'm not sure how to manage my wallet once an arbitrage is over.
On my example, i have ~0.1BTC on 4 different platform.
Lets say there is 3% gap for BTC/ETH between 2 platform. (eg. buy 0.1BTC; sell 0.103BTC)
So :
1) I buy 1 ETH at 0.1 BTC on platform 1, cost me 0.1005 BTC with 0.5% fees.
2) I send 1 ETH to platform 2 (0.006 ETH transactions fees).
3) Once i received my 0.994 ETH on platform 2, i sell it for 0.103$ (if the price is still the same), receive 0.10187 BTC with 0.5% fees.
So i made 0.00187-0.1005 = 0.00137 BTC (1.37% benefit) on the all process. The thing is i have now more money on platform 2 than platform 1.
Transferring BTC back is extremely expensive so it will cost me much more than what i made.
My questions are :
-How to deal with price variation before i receive my transfer on platform 2. I guess if there is many arbitrage bot live, they can equalize the price before i can sell it back.
-How to manage my wallets at the end, should i just wait to find an other arbitrage between platform 1 and 2 (on the other side) to send back money to platform 1?
-Is that correct to do arbitrage with usd to usdt? (ex platform1 : ETH/USD, platform 2 : ETH/USDT)
Thanks !