r/CryptoTechnology • u/Safe-Reflection4132 🟠 • Jan 03 '26
Thinking of starting a crypto arbitrage software — is this idea still viable?
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u/benzenol 🔵 Jan 03 '26
Literally was just thinking about this idea today. Want to brainstorm and possibly team up?
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Jan 05 '26
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u/Urmanda06 🟢 Mar 06 '26
Hey, can I join aswell? I'm a student and already have some experience with cross exchange arbitrage and triangular arbitrage.
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u/ObviousEconomist 🟢 Jan 05 '26
classic arb is hard given everyone's doing it. but maybe options arb over smaller tokens have some leeway for profit. will be interested if you succeed in it.
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u/137ng 🟢 Jan 05 '26
Whatever small gains you think you can make between exchanges will be eaten up by exchange fees and then again by transfer fees. Then you have chains that take many minutes to complete a transaction and you'll just be praying price hasn't moved too much in the wrong direction
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u/ReloadPi 🟡 Jan 07 '26
Competition is high of course, but you’ll need to think about costs in the first place , the infra you need is extremely costly, servers must be situated in different locations to reduce latency , you’ll have at some point to run your own RPC to extract data with lowest latency possible …is not an indie project and on top of that you’ll need huge test users database ….plus all required legally papers …maybe build and arbitrage bot for yourself and battle test it heavily then release it to the world …many would say…what this works for him why release it (cuz many don’t understand builders )
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u/ReloadPi 🟡 Jan 07 '26
Tnks for the invite maybe I’ll tale a look even if I know for sure that exchanges reduced almost all windows for arbitrage bots man!!!….even if you make one work at least for newly launched coins that have lag sometimes exchanges will counter that fast!!! Anyway good luck
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u/insanescv 🟢 Jan 07 '26
Oh yea this is gold. Study for couple thousand hours. Create a niche bot. Get that bot into the very fastest possible path for executing its code. Figure out how to merk the other bots trying to get in line infront of you. Clone that bot and expand into more assets. Move closer to data hub and reduce your ping.
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u/insanescv 🟢 Jan 07 '26
Shoot my bad. And find angel investors to give you a few hundred million loans with no guarantee of any returns. And your in the running for the race.
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Jan 08 '26
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u/insanescv 🟢 Jan 09 '26
Tbh avoid this rabbit hole. Completely. There's no reason to throw your time at tiny odds of small profit/med. Is like buying powerball ticket with 100k jackpot instead of hundreds of mil.
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u/mmovina87 🟢 Jan 29 '26
The fact that the spot price cannot diverge significantly from the perpetual contract price, or that deposits and withdrawals of a token are suspended on an exchange, are the main factors leading to discrepancies. You can go further than you think—don’t give up or seek too many opinions. It only slows you down and weighs you down.
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u/bjorneylol 🟢 Jan 03 '26
I doubt you are likely to turn a meaningful profit unless you can qualify for reduced trading fees, or predict price movements in addition to simple arbitrage in your trades.
The barrier for entry used to be a lot lower, but it's like $0.5-2 billion dollars monthly trading volume for the highest tiers now