Flip instead of arbitrage
CEX exchanges can sometimes delay token deposits and withdrawals, making arbitrage difficult. In such cases, you can consider a flip strategy - buying a token on an exchange with a lower price and waiting for the price to level off (rise) to the price on other platforms.
Advantages
Asset control: Unlike arbitrage, you retain full control over your assets. If the price continues to decline, you can quickly sell the asset with minimal losses.
Risk mitigation: eliminates the element of chance with possible delayed deposits/withdrawals from CEX
Disadvantages:
Potentially less profit: Unlike arbitrage, a flip does not allow you to take advantage of instant opportunities for the biggest profits as the price can level off against each other.
Last updated