Step-by-Step Guide: Your First Cross-Exchange Crypto Arbitrage Trade

If you have heard about crypto arbitrage and want to try it yourself, this guide will walk you through every step of executing your first trade. No prior experience required — just accounts on two exchanges and some starting capital.

Prerequisites

Before you begin, you will need:

• Verified accounts on at least two exchanges (we recommend Binance and Kraken to start)
• At least $500 in USDT deposited on each exchange
• A basic understanding of market orders

Step 1: Find an Opportunity

Visit our Arbitrage Pairs Dashboard and look for pairs showing a positive net profit percentage. Focus on pairs with:

• Net profit above 0.1%
• Sufficient volume on both exchanges
• A green indicator showing the trade is currently profitable

Step 2: Verify the Numbers

Before clicking any buttons, manually verify the opportunity:

1. Open both exchanges side by side
2. Check the ask price on the buy exchange (this is what you will pay)
3. Check the bid price on the sell exchange (this is what you will receive)
4. Use our Fee Calculator to confirm the net profit after all fees

Step 3: Execute the Buy

On the exchange with the lower price:

1. Navigate to the trading pair (e.g., SOL/USDT)
2. Place a market buy order for your desired amount
3. Confirm the trade executed at or near the expected price

Step 4: Transfer the Asset

1. Go to your wallet on the buy exchange
2. Click Withdraw and select the asset you just bought
3. Choose the cheapest network (check our Withdrawal Fee Tool)
4. Enter the deposit address from your sell exchange
5. Confirm the withdrawal

Step 5: Execute the Sell

Once the asset arrives on the sell exchange:

1. Navigate to the same trading pair
2. Place a market sell order
3. Confirm the trade executed at or near the expected price

Step 6: Calculate Your Profit

Your profit is: Sell proceeds − Buy cost − Trading fees (both sides) − Withdrawal fee

Important Warnings

• Speed matters: The price spread can close while your transfer is in transit. Start with fast-transfer coins like SOL or XRP
• Double-check addresses: Sending to the wrong address means permanent loss
• Start small: Your first few trades should be small amounts until you are comfortable with the process
• Tax implications: Arbitrage profits are taxable in most jurisdictions. Keep records of every trade

What to Do Next

Once you have completed your first successful arbitrage trade, you can scale up by:

• Increasing your position sizes
• Pre-positioning funds on multiple exchanges
• Monitoring more trading pairs simultaneously
• Setting up alerts for high-spread opportunities

Check our blog for more advanced strategies and optimization techniques.