Introduction to Arbitrage and Arthur
Arbitrage is the process of buying on one exchange at a lower price, transferring it to another exchange, and then selling it on that exchange at a higher price. The goal is to profit from the difference in coin prices between exchanges. Arthur, the arbitrage tool, makes it easy to compare different prices on exchanges by displaying all opportunities in a single location. With additional user input, Arthur will alert you when new opportunities arise based on your personal preferences such as exchanges, coins, and percent thresholds.
Fees Involved in the Arbitrage Process
Currently, we don’t include the fees involved in the arbitraging process on the arbitrage tool. There are generally the following fees to consider when executing an arbitrage trade:
- Buy / sell fees (usually around 0.1 ~ 0.2% on each transaction depending on exchange)
- Exchange withdraw fees (depend greatly on a coin and exchange, the more popular the coin the less the fees usually are)
- Slippage – this can vary drastically from exchange to exchange and from coin to coin. The best way to avoid high slippage is to be sure the order book liquidity is large enough to handle your transaction
Setting up Arthur
Arthur is free to use if you have at least $50 worth of Drop Tokens in your Dex portal wallet or active in Dex, the automated trading bot. The first step is to create a free account and deposit Drop Tokens. You can buy Drop Tokens from one of our partner exchanges.
Once you have your account setup and at least $50 worth of Drops in your portal wallet, click on the Arthur link in the left menu of the user portal to see current arbitrage opportunities.
On this page, you will see all of the arbitrage opportunities that Arthur is monitoring. If you want to edit the exchanges and the coins that your personal account monitors, as well as setup Arthur alerts, click the settings button which is located in the top right corner of the page.
Within the settings panel, you are able to select which exchanges and which coins you will see on the main Arthur page. You may also setup email or Telegram alerts here and set a specific percent difference in price that you would like to be notified for.
For a more in depth and visual guide to Arthur, check out this video: