Crypto cardless Arbitrage Trading: How To Make Free Money With Crypto
Although the Nigerian Central Bank has finally done their worst, this article remains as pertinent as ever. To trade cryptocurrencies successfully from Nigeria, the rule remains the same: AVOID THE BANKS!!! Avoid any Nigerian payment processor or debit card at all costs! Use P2P, gift cards, and other global payment options.
In Nigeria, crypto arbitrage trading is a real thing. In Nigeria, there are numerous ways to make money by trading cryptocurrencies such as Bitcoin, Ethereum, and USDT.
However, only a few people have access to the necessary information. Arbitrage trading is the same worldwide, as you can see. The rule is the same whether you’re trading stocks, gold, paper assets, or cryptocurrencies: buy low, sell high.
However, the avenues via which you can acquire cheap are often limited, and often only available to a select few.
I’m sure you’ve tried cryptocurrency arbitrage before, but it didn’t work out. Many people have attempted and failed to make money. I’m one of them.
In fact, I was so enthralled by the prospect of finding possibilities for crypto arbitrage trading that I tried a variety of approaches. To be honest, I lost money trying to implement a number of these strategies.
Trying to Buy crypto Cheap With Your Naira Debit Card and sell on binance p2p: Arbitrage
This method might ultimately end in tears. Most Nigerian banks have blocked their cards from working on cryptocurrency platforms. They know this game and they are out to block you from making free money.
Sometimes, if you find a way to use your Nigerian Naira debit card on any crypto platform, you’ll either get debited but the payment would fail, or they would charge you above the CBN rate, up to an amount that would ensure you lose out if you try arbitraging.
You are going to lose anyway. So, avoid using your Naira debit cards for anything arbitrage for now. It doesn’t work. It would make you lose money.
There are some platforms where you can buy crypto at a very cheap rate. But the problem is not in your market entrance but in your exit. How would you exit the market without losing your profits?
I’ve discovered that most platforms where you can buy cheap crypto have high fees that are setup to diminish your profits. They charge higher fees for platform exchange and P2P exchange. Before you can get back your money in Naira, your profits would have been effectively wiped out.
So, what many people do is that they buy from a platform that sells low and tries to transfer that crypto to another wallet on a platform that buys high. The problem with this is that most times, they do not factor in the exchange fees it would cost to make such transfers. Once they make the transfer, they lose money, and their arbitrage game is over.
This shows that for now, inter-platform arbitrage doesn’t work. The fees involved would wipe out your profits, and most times, the transfer is too slow that the whole arbitrage would become frustrating for you.
The truth is that small crypto traders rarely make any profit through arbitraging. It is either that the trade volume is not enough or you’ll find only a few traders with low rates willing to trade with you.
If you check most cryptocurrency platforms that offer P2P, you’d see that the traders with the best rates set a high minimum transaction limit. They do not want to deal with unserious traders and they want to reduce the fees that come with making too many small transactions.
So, the first step to making money through crypto trading arbitrage is to start with a respectable amount of money as your capital. I would say between 200k and 500k.
With higher trade volume, your profit can increase exponentially. Let’s do some quick math.
Let’s say you can make 0.2% profit per arbitrage trading you do. If your capital is 20k, you make a profit of 40 Naira. To make 4k Naira profit per day, you would need to repeat the cycle 100 times!
What if you had a capital of 200k? You would make a profit of 400 Naira. To make 4k Naira profit per day, you would need to repeat the cycle just 10 times.
With a capital of 2 million Naira, you could make 4k on a whim. If you need more, you could repeat the cycle 10 times to make 40k profit per day.
Can you now see how your trade volume could transform your daily profit from just 40Naira to 40k Naira? That is scale. You would be wondering how these big players are making huge profits off crypto doing arbitrage, but the truth is that they are not doing anything different. They just have bigger capital to trade with, hence, their bigger profits.
With a handsome capital, you could start trading crypto via P2P with the guys who have the best rates but set high minimum transaction volume.
On Binance, I’ve seen a trader with a sweet rate put his minimum transaction to 1 million Naira. That means, if you don’t have 1 million Naira, you can’t trade with him. His rate was about 5% above the others, which means that just by trading with him, you are already 5% richer in profit than the vast majority in that market. Think about that.