- What is crypto arbitrage and how does it work?
- Crypto arbitrage is the practice of buying an asset on one market where it's cheaper and simultaneously selling it on another market where it's more expensive — profiting from the price difference minus fees. The three main types are: (1) cross-exchange spot arbitrage (same asset, different CEXes), (2) spot-perp basis arbitrage (long spot + short perp to collect funding), (3) triangular arbitrage (three trades around a currency loop). Sharpe's scanner covers all three across 13 exchanges.
- What is spot-perp basis arbitrage?
- Spot-perp basis arbitrage is a market-neutral strategy: buy spot + short the perpetual futures on the same asset. You earn the funding rate payment (typically 10–30% APR on liquid pairs) without directional risk. When perps trade at a premium to spot, positive funding flows to shorts. The trade holds until funding normalizes or you rotate the capital. Sharpe's arbitrage scanner surfaces live spot-perp opportunities with live APR.
- Is crypto arbitrage still profitable in 2026?
- Yes, but the game has changed. Simple spot-spot arbitrage is heavily automated by market makers — spreads on BTC/ETH are usually <0.05% and not worth executing manually. The persistent profitable arbitrage opportunities in 2026 are: (1) spot-perp funding basis on mid-cap alts (20–100% APR observed), (2) cross-exchange spreads on illiquid launches (pump.fun graduates, new Binance listings), (3) structural spreads during volatility events. Sharpe's scanner filters for net-profitable opportunities after fees.
- How much capital do I need for crypto arbitrage?
- Arbitrage scales with capital. For meaningful profit you want $10K+ pre-funded across the exchanges you're arbitraging — having capital already positioned eliminates the slowest execution step (on-chain transfers). Institutional basis traders run $10M+. Sharpe's scanner surfaces the largest opportunities first so capital-constrained traders can focus on the top 5–10 spreads by spread-dollar-amount.
- What's a good arbitrage spread to trade?
- After fees (typically 0.05–0.1% per leg on a tier-1 CEX, so 0.2% round-trip) and slippage (0.05–0.3% depending on size), spreads above ~0.5% on liquid pairs are usually net-profitable. For spot-perp, look for annualized funding APR above 20% on blue-chip pairs and 50%+ on mid-caps to cover the capital opportunity cost. Sharpe's scanner displays gross spread; compute your own net after your fee tier.
- What is triangular arbitrage?
- Triangular arbitrage exploits imbalances across three trading pairs on the same exchange — e.g., BTC/USDT, ETH/USDT, ETH/BTC. If the implied cross rate (BTC/USDT ÷ ETH/USDT) differs from the direct ETH/BTC price, you can cycle through all three pairs and end with more of your starting asset. Opportunities are tiny and fast-moving; pure algorithmic execution wins. Sharpe's primary focus is cross-exchange and spot-perp rather than triangular.
- Which exchanges have the biggest arbitrage spreads?
- Spreads tend to be widest on second-tier CEXes (MEXC, Gate.io, BingX) and during volatility events when tier-1 liquidity thins. Regional mismatches also create spreads — e.g., Korean premium ('kimchi premium') historically pushes Korean CEX prices above global. For spot-perp, Hyperliquid and Bybit typically carry the highest funding rates on new listings. Sharpe aggregates all 13 exchanges into a single scanner so you don't have to monitor each separately.
- What risks are unique to crypto arbitrage?
- Key risks: (1) withdrawal delays that leave you exposed between legs (mitigation: pre-fund both exchanges), (2) exchange solvency / freeze risk (distribute capital across multiple tier-1 venues), (3) funding rate reversals on basis trades (exit criteria before entry), (4) MEV / front-running on on-chain legs, (5) tax implications of high-frequency trading in your jurisdiction. Sharpe provides the signal; risk management is on the trader.
- How often does the arbitrage scanner update?
- Price data refreshes every 60 seconds across all 13 exchanges. Funding rates refresh every 30 minutes for the spot-perp basis view. When you click into a specific opportunity, Sharpe's calculator tool computes the net profit at your capital size and fee tier in real time. Scanner data may be 1–60 seconds behind tick-level depending on exchange API latency.
- Do I need to use a bot to arbitrage crypto?
- Not necessarily. Manual arbitrage works on spot-perp basis trades (you hold the position for hours or days — no speed advantage matters). For cross-exchange spot arbitrage on liquid pairs, bots dominate — you won't compete manually. Most Sharpe users run a mix: manual on high-conviction basis trades, API-driven on high-frequency cross-exchange. Sharpe's public REST + MCP API exposes the live opportunity feed for bot integration.
- Are the arbitrage spreads shown real-time?
- Yes. Price data fetches directly from exchange APIs each 60-second cycle. By the time you execute, the spread may have narrowed — execution speed and pre-positioned capital are critical. The scanner prioritizes persistent structural spreads (exchange-user-base differences) over flash opportunities (volatility spikes that close in seconds).
