Hello,
As far as I know, an arbitrage is a two-dimensional transaction that increases the number of coins on each exchange without having to transfer money.
For example,
Assuming that both A and B exchanges have BTC and ETH of 1 BTC and 12 ETH, respectively, with a total of 2 BTC + 24 ETH,
At any moment
A exchange 1BTC = 12ETH
B Exchange 1BTC = 13 ETH
We sell 12 ETHs on A exchange and buy 1BTC to become 2BTC total.
I buy 1 BTC at B exchange and purchase 13 ETH to become 25 ETH total.
The result is 2BTC + 24ETH and 2BTC + 25ETH.
There are blind spots here,
1. Because the bots will soon disappear, premiums must be traded quickly and individuals can not trade on their own. (4 ~ 5% of transactions, even within a few seconds, actually 3% profit due to time difference)
2. A few foreign exchange accounts (Korea, Japan, etc.) must be opened in advance, and coins must be deposited in a number of cases.
3. Mental problems, volume problems, troubles of using OTP, etc.
as you know
I already use this arbitrage to bite the difference.
The only way people can eat is to use things like reminders.
There are several alerting services in telegrams such as @cryptomarketalert_bot and @panicwatch.
It's also on Twitter and the website.
However, I am wondering how much I can really profit from the blind spots I wrote above.
I guess that there are a lot of bots for arbitrages so I'm not sure if individuals can make it.
If you have a good idea, I want to share it.
If by "individuals" you mean doing arbitrage without a bot, yes you still can, on low market cap alts. If you spot a good spread it can go up to 30% profit.
However those kinds of opportunities are rare and hard to find
If you really want to do arbitrage in a serious and consistent way, you have to have a bot
there is a few open source bitcoin arbitrage bits on the internet, however due to API changes they might be outdated
you should write a bot that looks for good opportunities on the market then one that make the arbitrage
Coding this is trivial for most of the developers, there is no barrier for anyone who know how to program