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Spot Arbitrage — Buy Low, Sell High Across Exchanges

Spot arbitrage is the simplest and most popular form of crypto arbitrage. You buy an asset on one exchange where it is cheap and sell the very same asset on another exchange where it is more expensive. No futures, no leverage, no complicated order books — just a real, measurable price difference that you convert into profit. It is the natural starting point for anyone learning to trade the gaps between markets, and it is exactly what ArbiScreen was built to find.

What Is Spot Arbitrage?

Every crypto asset — Bitcoin, Ethereum, USDT — trades on dozens of independent exchanges at the same time. Each exchange has its own order book, its own buyers and sellers, and therefore its own price. Most of the time those prices are close, but they are almost never identical. When the gap grows wide enough to cover your trading and transfer fees, a profit opportunity appears.

The formula is deliberately boring: same asset, different exchanges, buy low, sell high. If BTC costs $67,200 on Exchange A and $67,900 on Exchange B, that $700 difference is a 1.04% spread. Buy on A, sell on B, and you capture the gap. Because you hold the underlying coin rather than a derivative, there is no funding cost, no liquidation risk, and no expiry to worry about. This directional simplicity is why beginners almost always start here before moving on to triangular, funding-rate, or DEX strategies.

The catch is speed and cost. Spreads open and close in seconds, and fees quietly eat into gross profit. Winning at spot arbitrage is less about predicting the market and more about seeing the spread first and executing before it closes — which is a monitoring problem, not a forecasting one.

How It Differs From Other Arbitrage Types

Spot arbitrage sits at the accessible end of the arbitrage spectrum. Understanding how it compares helps you choose the right strategy for your capital and experience level.

Type Complexity Risk Capital Needed Speed Required
SpotLowLow–MediumLow ($100+)Medium
TriangularHighMediumMediumHigh
Funding RateMediumMediumHighLow
DEX / On-chainHighHigh (gas, MEV)Medium–HighVery High

The takeaway: spot arbitrage asks the least of you in terms of capital, code, and market knowledge, while still rewarding good execution. That combination of low barrier and steady opportunity is why it remains the most popular entry point.

Why Price Differences Exist

A reasonable question: if everyone can see the prices, why don't they instantly equalize? The answer is that crypto exchanges are not connected to each other. Each is an island of supply and demand, and several structural forces keep those islands out of sync:

  • Liquidity depth. A large buy order on a thin exchange pushes the price up faster than on a deep one, creating a temporary gap.
  • Geography and regulation. Regional exchanges in South Africa, Turkey, Korea, or India often trade at a persistent premium or discount because capital cannot flow freely across borders.
  • Exchange user base. Different platforms attract different traders — retail vs institutional, spot vs derivatives — and their buying pressure differs.
  • Deposit and withdrawal availability. When an exchange pauses deposits or withdrawals for a coin, arbitrageurs can't rebalance, so the price drifts and the spread widens.
  • Market-maker activity. Automated market makers keep prices tight where they operate; where they are absent or offline, spreads open up.

These forces guarantee that spreads never fully disappear. They shrink, they widen, they move from coin to coin — and a monitor like ArbiScreen exists precisely to catch them the moment they appear.

Step-by-Step Spot Arbitrage Guide

Here is the full workflow using ArbiScreen, from spotting an opportunity to locking in the profit.

1

Open ArbiScreen

Launch app.arbiscreen.com. The board loads live spot prices across all 17 exchanges and sorts opportunities by net profit automatically.

2

Spot the spread

Scan the top rows for a gap that clears your minimum threshold — say 0.5% net. Look at the buy and sell exchange columns to see exactly where the coin is cheap and where it is expensive.

3

Check net profit after fees

Ignore the gross number and read the net-profit column. ArbiScreen has already subtracted trading and withdrawal fees, so what you see is close to what you keep.

4

Verify withdrawal networks

Confirm a common network is open on both exchanges (e.g. TRC-20 for USDT, Solana for SOL). If deposits or withdrawals are paused, the trade cannot complete — skip it.

5

Execute buy + sell

Buy on the cheap exchange and sell on the expensive one. For fast spreads, do both simultaneously with pre-funded accounts; for wide spreads, buy then transfer then sell.

6

Rebalance

Move funds back so both accounts are ready for the next opportunity. Over time you keep a working float on your most-used exchanges to minimize transfer waits.

Real Trade Examples

Numbers make it concrete. Here are three realistic trades with the full math, gross and net.

Example 1 — BTC: Binance vs Luno (South Africa)

You spot BTC at $67,000 on Binance and $68,005 on Luno (ZA) — a 1.5% gross spread. On $10,000 of capital that is $150 gross. Now subtract costs: 0.1% buy fee ($10), 0.1% sell fee ($10), a ~0.0002 BTC network withdrawal (~$14), and ~0.3% slippage on the thinner Luno book (~$30). Net profit lands around $80, or 0.8% — a solid single-trade return that clears in under 30 minutes.

Example 2 — USDT: Global vs Turkish Exchange

During periods of local currency stress, USDT trades at a 3% premium on Turkish exchanges — say $1.03 vs $1.00 globally. Buy 10,000 USDT at $1.00, transfer on a cheap network like TRC-20 (fee ~$1), and sell for $10,300. After ~0.2% in combined fees ($20), net profit is roughly $279, or 2.8%. Geo-driven stablecoin premiums are among the most reliable spot opportunities — see geo arbitrage.

Example 3 — SOL: KuCoin vs Bybit (Quick Scalp)

SOL shows a 0.5% spread — $148.20 on KuCoin, $148.94 on Bybit. This is a same-second dual-exchange scalp: you already hold SOL on Bybit and USDT on KuCoin, so you buy on KuCoin and sell on Bybit simultaneously. On $5,000 the gross is $25; after ~0.1% total fees ($5) you net about $20, or 0.4%. Small, but repeatable many times a day with no transfer wait.

The Two Methods

There are two distinct ways to run a spot arbitrage trade, and choosing correctly is half the game.

Simultaneous (Dual-Exchange)

Pre-fund both exchanges. Buy on the cheap one and sell on the expensive one at the same time, then rebalance later.

Pros: no transfer wait, no price-drift risk. Cons: ties up capital on both venues. Best for: fast, thin spreads like the SOL scalp.

Sequential (Transfer)

Buy on the cheap exchange, withdraw the coin, deposit on the expensive exchange, then sell.

Pros: capital-efficient, only funds one side. Cons: exposed to price moves during transfer. Best for: large, durable spreads like geo premiums.

Rule of thumb: use simultaneous for small, fast spreads and sequential for wide spreads that will survive a 10–30 minute transfer.

ArbiScreen for Spot Arbitrage

ArbiScreen is a live spot-arbitrage scanner comparing prices across 17 exchanges in real time. Each row is one opportunity, and each column answers a question you would otherwise have to check by hand:

  • Coin & pair — the asset and its quote currency.
  • Buy / Sell exchange — where it is cheapest and where it is most expensive right now.
  • Gross spread — the raw percentage difference.
  • Net profit after fees — the number that actually matters, with trading and withdrawal fees already deducted.
  • Withdrawal networks — which chains are open on both sides so you can actually move the coin.
  • Spread age — how long the gap has existed, so you can tell a fleeting blip from a stable opportunity.
  • History chart — the spread's behaviour over time to judge reliability.

Sort by net profit to surface the best trades, filter by the exchanges you actually have accounts on, and use spread age to avoid chasing stale numbers. Open ArbiScreen and watch the board update live.

Best Coins for Spot Arbitrage

CoinAvg SpreadWithdrawal FeeTransfer SpeedBest NetworksRisk
USDT0.3–3%~$1FastTRC-20, BEP-20Low
BTC0.2–1.5%~$5–15SlowBTC, LightningMedium
SOL0.3–1%~$0.01Very FastSolanaLow
XRP0.3–1.2%~$0.02Very FastXRP LedgerLow
ETH0.2–1%~$1–5MediumArbitrum, ETHMedium

Fast, cheap-to-transfer coins like SOL and XRP are ideal for the sequential method, while USDT's frequent geo premiums make it the workhorse of spot arbitrage overall.

Best Exchange Pairs for Spot Arbitrage

Opportunities cluster around exchanges with different user bases and liquidity profiles. The most productive combinations pair a deep global venue with a regional or mid-tier one:

  • Binance ↔ Luno / Bitget — a deep global book against regional demand generates frequent BTC and USDT gaps.
  • Global ↔ Turkish / Korean exchanges — the classic home of stablecoin and altcoin premiums.
  • KuCoin ↔ Bybit — two liquid mid-tier venues that constantly drift apart on altcoins, perfect for fast scalps.
  • Gate.io ↔ MEXC — broad long-tail coin listings surface spreads you won't see on majors.

ArbiScreen watches all 17 venues at once, so instead of guessing which pair is hot today, you simply sort the board and let the data point you there.

Risk Management

Spot arbitrage is low-risk, not no-risk. A disciplined approach keeps small execution slips from becoming losses:

  • Position sizing. Never commit more than the thinner order book can absorb without heavy slippage. Check depth before you size.
  • Spread validation. Confirm the spread is real and current — use spread age and the history chart, not a single flickering quote.
  • Timing. For sequential trades, only accept spreads wide enough to survive the transfer window with margin to spare.
  • Stop-loss thinking. If a coin moves against you mid-transfer, sell immediately at market rather than waiting for the spread to return. Preserve capital; the next opportunity is minutes away.

Common Mistakes in Spot Arbitrage

  • Chasing stale spreads. A number you saw 60 seconds ago may already be gone. Always confirm spread age.
  • Using the wrong network. Withdrawing USDT on ERC-20 when TRC-20 was available can cost $20+ and erase the profit — or worse, sending on a chain the receiving exchange doesn't support.
  • Ignoring fees. A 1% gross spread can be a net loss once trading fees, withdrawal fees, and slippage are counted. Trade on net, not gross.
  • Oversized positions. Filling more than the book holds moves the price against you and eats the very spread you came for.

FAQ

Is spot arbitrage legal?

Yes. Buying low on one exchange and selling higher on another is a normal, legal trading activity. Just follow each exchange's terms and your local tax rules.

How much money do I need to start?

You can begin with as little as $100, but fixed withdrawal fees eat proportionally more of small trades. $1,000–$5,000 is a comfortable range where fees stay negligible relative to profit.

How much can I realistically make?

Per-trade net returns typically run 0.3–3%. Profitability comes from repeating small, reliable trades many times rather than one big score. Volume and discipline matter more than any single spread.

Do I need to code or run a bot?

No. ArbiScreen surfaces the opportunities and you execute manually on the exchanges. Bots can help with speed on thin spreads, but they are optional for spot arbitrage.

What's the biggest risk?

Price drift during a transfer on the sequential method, and slippage from oversized orders. Both are managed by validating spread age, sizing to book depth, and preferring liquid coins.

Why do the spreads shown differ from what I see on the exchange?

Prices move by the second. Always check ArbiScreen's spread age and refresh before executing — a spread that is several minutes old may already have closed.

Start Finding Spreads in Real Time

ArbiScreen compares spot prices across 17 exchanges, shows net profit after fees, and flags open withdrawal networks — everything you need for spot arbitrage on one screen.

Open ArbiScreen →

For a market-neutral alternative to spot arbitrage, see cash-and-carry arbitrage, where the profit is fixed the moment you open the trade.

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