Realistically, is arbitrage automation profitable?

Question

I  will preface by making it clear that I still don't understand the  intricacies of trading, I just now that on one DEX, a crypto is worth a  certain amount and on another DEX that same crypto is worth a couple  cents more or a couple cents less. Is A is worth $1 on DEX 1 and A is  also worth $1.05 on DEX 2 then buying A on DEX 1 and selling A on DEX 2  yields 5 cents. This process can just be automated easily to be done  hundreds of times no? Even if you are accounting for trading fees, you  can write a bot to calculate trading fees and determine if the trade is  still profitable after. What am I missing here? I'm not even aiming for  insane profits, just a profit in general (maybe $1-$5 a day)

Also  if you don't mind could you share how you started to learn about crypto  and trading? What resources did you use and how would you recommend a beginner to get started? I'm 20 years old so I don't have very much money but I'm trying to find out if crypto is a good way to earn a lot lol

Ty for taking the time to read

Answer 1

Usually any opportunities that exist are arbitraged within the same block - that is, if user A buys on dex A and pushes the price up, in the same block a bot will sell on dex A and buy on dex B to balance the prices as long as it’s profitable after dex fees and gas fees. So what you’re suggesting is basically impossible unless you have the ability to read the mempool (pending transactions) and compete in the gas auction with other bots. Pure arbitrage is highly competitive and you’ll probably lose money trying to do it in wasted gas fees. You have better luck at dex - cex arbitrage or related markets (spot vs perps, for example) statistical arbitrage, but that requires you to hold inventory of the 2 tokens and take some risk.

Answer 2

True investment bots that use quants require developer fine tuning almost daily.  Anything that works won't in 3 months.

The only reason why people market bots is because they get a cut of commission /\\.

Real bots require humans to constantly make them win.

As for simple arb bots, it won't be worth it in todays market without developer experience or a lot of money.  You will constantly need to beat out other developers who are working harder/higher intelligence or understanding, clever, etc.

There's no such thing as a 'set and forget'.

As for automated debt strategy bots, they exist but are purely for managing positions

Answer 3

Uh, hundreds of times? no ... but try doing it just once with $10,000,000 and see what the numbers tell you

Answer 4

Don’t trade.  Invest and sell the top.  Trading short term puts u at a 95-99% odds of losing money

Answer 5

Isn't this arbitrage trading too stressful, why don't you just get your funds on some alts and stake them on  secured DEX like Maiar Exchange where you can earn passively via several means including participating metastaking, metabonding, aside from the usual liquidity mining just like I'm doing with RIDE, UTK and ELGD on the DEX.

Answer 6

Of course.... there are so much companies that make millions in dex abritages as we speak

Answer 7

You'd probably make more profit from just staking than arbitrage. It's stressful and time consuming. I stake mostly stables, ETH, and XPRESS. Stopped trading when I got a super stressful dev job, and I also learned that I made more long-term profit from dca and staking.

Answer 8

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Answer 9

yes, sandwich trades withing the same block

Answer 10

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