(3rd-January-2020)
Summarized, we looked at how to make money on arbitrage with cryptocurrencies. Basically, we have identified 2 important steps. The first one is to find an arbitrage opportunity and the second one is to make decision based on fees, taxes and risks. The important factors to consider are
Exchanges: some have higher fees, some take longer transaction times, some are more trustworthy.
Kind of arbitrage you want to execute, because for the arbitrage across exchanges you need relatively more investments than within one exchange.
Market volatility: some coins fluctuate more than others.
Country of your residence, since as a private person or a company you might have to pay taxes.
Your funds/investment in fiat and/or in cryptocurrencies on one or across exchanges. Remember, that to trade across exchanges you need to have a fiat and the crypto available on these in order to maximize your profits on arbitrage.
In my opinion it is also important to understand that you need several arbitrage transactions to cover your deposit, withdrawal fees and evenual taxes.
By taking into the account all these ingredients: fees, risks, taxes, you can increase your chances of success in the crypto arbitrage.
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