[Tutorial] Loop-Arbitrage

Here is a tutorial of the loop arbitrage that I mentioned in previous article, (It is just example, Use bitbns extension to check profitable pairs while doing arbitrage):

First part:

BTT price on Bitbns: 0.0991

BTT price on Binance: 0.101

BTT difference approx: 2%

So you gain around 2% profit while transferring BTT from Bitbns to binance

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Second part:

Now while transferring it back to bitbns we are using XRP in this tutorial:

XRP price on binance: 27.075

XRP price on bitbns: 29.60

XRP difference approx: 9%

You buy XRP from Binance > Send it back to bitbns and gain around 9% profit.

Total profit:

- In intra-exchange arbitrage: 4%+

- First part of loop-arbitrage: 2%+

- Second part of loop-arbitrage: 9%+

= 15% profit overall

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Sometimes you may suffer small loss while doing first part of loop-arbitrage (Bitbns > Binance) so transfer the token in which you are not loosing much and recover that loss + gain extra proft while transferring it back to Bitbns.

For example:

- Loss in first part of loop-arbitrage: 5%

- Profit in second part of loop-arbitrage: 9%

-> 5 - 9 = 4% overall profit in loop-arbitrage.

Useful links:

👉 About intra-exchange arbitrage (previous article): https://telegra.ph/Worried-about-transaction-charges-and-speed-while-doing-arbitrage-07-07.

👉 About Bitbns extension: bit.ly/2F5oz9r.