Is there anyone on earth who doesn't like easy money?

No

I could recall a time when I consistently made a decent monthly income through crypto arbitrage.

In Nigeria, there is Dollar-Naira institutional arbitrage, but this is not the focal point of today's letter.

So, every month, I will be ready with all my bank cards and ready to make a minimum of #13,000 per card.

Do this maths, pepper soup money don land be that:)

Way back in 2016 to 2017, it is hard to resist the sexy voice of crypto arbitrage.

Then, it was easier because it is not as popular as it is right now.

Today, every group on Telegram and almost all Nigerian Crypto YouTubers are talking about the latest arbitrage opportunities.

Some are risky, but people are still taking the risks.

At the moment, the arbitrage business is no longer profitable as it used to be.

No thanks to CBN... Haha

The central bank of Nigeria, in a bid to rescue the Naira from imminent collapse, decided to reduce the dollar limit of all debit cards, they went further to stop banks from processing cryptocurrency transactions.

What happened? Nigerians, despite not being able to spend more than $20 per month on debit cards, could not spend the limit on major crypto platforms. They started looking for several ways to use the monthly limit for arbitrage.

Gradually, card arbitrage started dying a natural death.

But....

Bad actors began to create arbitrage platforms that give guaranteed daily returns.

For the love of arbitrage, many Nigerians jumped on it.

They all got swindled!

Why?

Although the platform owners claimed that they have built a powerful algorithm that does automatic arbitrage trading on top crypto exchanges.

Na lie, they are running an underground Ponzi scheme.

As soon as they get enough of your money, they collapse the pyramid and start another platform with different names. As long as a platform cannot show you evidence of coins that are moving from one exchange to another, it is a gimmick.

Arbitrage is usually between 2 or more exchanges, for instance, if the bot helps you buy from Huobi and sell at Binance, there should be a transaction hash showing the movement of coins between these exchanges.

I have interacted with a genuine arbitrage bot on Bitsgap before, but they stopped offering this service when the crypto price feeds and oracle got better. This improvement made it difficult for the algorithm to detect profitable arbitrage.

Go to coinmarketcap website, you can barely spot a major price gap between exchanges, the technology and liquidity has improved over years.

The price gap still exists, but it is very scarce. And most times, when you find it, the difference does not provide enough profit when withdrawals and trading fees are put into consideration.

I hope you understand now, do you?

Be wise, my friend, be wise.

PS: I have a dedicated playlist on the CryptoNiche YouTube channel where I expose crypto scams. My goal is to keep the community safe.

I like to invite you to join over 1,300 other people who are actively learning from me through the YouTube channel.

Subscribe now👇

https://youtube.com/@CryptoNiche

If you find an arbitrage opportunity and you'd like to know if it is genuine or not, feel free to send me a DM or inbox me. I will be glad to help have a critical look at it.

Ojeniyi Ayobami Abimbola is your guy that teaches crypto in simple Nigerian English.

I love you 😍

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