At end of this article, you are going to learn what bitcoin arbitrage trading is and how to make extra income consistently from this type of trade.
Most emails I receive from my readers is on how to make extra income in the cryptocurrency world.
I do not give financial advice. However, I put down everything that I have personally tested out and made a profit from for your consumption all for free.
I have written on How to trade cryptocurrencies & Make a profit from every trade.
In the test, 266 trades were made 265 won with only a loss. We have also had a telegram group for discussion and a channel for a signal.
If this is you, then bitcoin arbitrage trading might just be the solution and I am going to make it easy for you.
They also have the highest number of customers and Trading Volume.
So for the purpose of this article, our arbitrage trading will be across these two platforms.
Without further ado, let’s get started.
What is Bitcoin Arbitrage Trading?
“Arbitrage is a trading strategy in which an asset is bought in one market and simultaneously sold in another market in other to make a profit from the short-term price difference between these two markets.”
The asset could be currency, commodity, security or any tradeable item.
Bitcoin arbitrage is simply when the asset traded is bitcoins.
The market is the platform where the asset can be traded which in this case we are specific to Remitano and Luno.
Note: The market must offer the same asset for arbitrage to be traded across them. This means that we can trade bitcoin and Ethereum arbitrage across Luno and Remitano. However, we will concentrate on Bitcoin Arbitrage.
What Condition Gives Rise to a Profitable Arbitrage Trade?
Arbitrage trade usually occurs when there is a sharp drop or rise in the price of an asset sometimes triggered by a news and different markets react to it at their own pace.
Let’s assume a scenario where there is a sharp price drop in the price of bitcoin and Remitano was quick to respond to it but Luno was not.
Let’s assume that for a period of 20 mins, the price of bitcoin on Remitano was N3,500,000/BTC and N4,000,000/BTC on Luno. If I have N100,000, I can buy 0.02857btc on Remitano with my 100k, send it to Luno and sell it for N114,285.
This is approximately N14,000 instant profit.
- Your actual profit depends on the transaction charges of these platforms.
- The time taken for the transaction to be confirmed should also be put in perspective.
- Send bitcoins: 0.0002
- Receive bitcoins: 0.002
- Send bitcoins: Dynamic
- Receive bitcoins: Free
To know your actual profit, you have to subtract these transaction charges.
For the above example, our actual profit will be N11,485 when we subtract the transaction charge instead of N14,285.
When you use the arbitrage calculation table, this subtraction has already been done for you.
What Do You Need to Get Started?
- A Luno account: – I have thoroughly reviewed Luno with a video of how to use it.
- A Remitano account: – I have also reviewed this platform with a video on how to trade on it.
- Arbitrage Price Calculation Table: – You will find this at the end of this article.
- You trading capital.
Most bitcoin enthusiast in Nigeria already have this account, so let’s proceed.
How to Trade Bitcoin Arbitrage on Remitano and Luno.
How to Use the Arbitrage Computation table.
The tables are still under development. You can support the project
I created this computation table to help you to quickly compute your result.
Once you enter the required values, you will see the amount of Profit or Loss you will make before you carry on with the trade.
Make sure you fill the table correctly to get the right result. You can trade from Remitano to Luno or from Luno to Remitano depending on the one that is most profitable.
The first option is usually where arbitrage opportunities occur but I included the second just in case.
From Remitano to Luno
- STEP 1: Enter the “Buy At” price on Remitano
- STEP 2: Enter Luno “Sell Price” This can be seen at the Luno exchange section (the number in red)
- STEP 3: Enter the amount you wish to trade with.
Once you are done, the result will be displayed in green if it is Profit and in red if it is a loss.
From Luno to Remitano
- STEP 1: Enter Luno ‘Buy Price’ this can be seen at the Luno exchange section (the number in green)
- STEP 2: Remitano “Sell At” Price
- STEP 3: Enter the Amount you wish to trade with
To get to this Arbitrage Calculation Table at any time, scroll down to the bottom of this page. At the footer widget with the title “Our Projects” click on Arbitrage Calculation Table.
If you use this table, you will notice that most times, the results are always negative.
This is because arbitrage opportunities are not always available.
It may only occur 1 – 4 times a week.
This also means you have to be online most of the time to discover the time this occurs.
For this, we are developing a solution.
Further Development of the Arbitrage Calculation Table
We are working to implement the following
- Show the real-time bitcoin price of Luno and Remitano
- Send Alert to subscribers on telegram and to their emails when a profitable trade is detected
- Add more trading platform
- Add more cryptocurrencies
You can help us to faster achieve this development by donating to this project.
Donate Bitcoin: 1AqBXaB74A7aoMNfs6pexr18xDP1XuXViG
Donate Ethereum: 0x7a0921e65688fCD75881775538AA75489Fa9BA64