How Arbitrage Works (Simple)
Numeric Example
Sell BTC at $40,600
Gross spread: $600 (1.50%)
Fees + slippage (example): $180
Estimated net: $420
Get alerted when spreads widen
Choose instant alerts when spreads exceed 0.3%, or a weekly top-5 digest. Free forever — one-click unsubscribe. Always verify costs before trading.
No spam. Unsubscribe any time. See what we send →
Open an exchange account
These are exchanges we track. Partner links support CoinNavigator at no extra cost to you. Region: —
Beginner Hub
Market Intelligence
All guidesExchange Comparison Guides
View all guidesLatest from the Blog
View all articlesFrequently Asked Questions
How much money can you make from crypto arbitrage? +
A displayed spread is only the starting point. Actual results depend on trading fees, withdrawal/network costs, slippage, transfer time and whether both prices are still executable. Use the calculator before treating a spread as an opportunity.
Which exchange is best for crypto arbitrage? +
There is no single best exchange for every arbitrage route. Liquidity, fees, withdrawal status and the executable price can differ by asset and moment. Compare the live venues first. Compare Binance vs MEXC →
Is crypto arbitrage legal? +
Yes. Cross-exchange crypto arbitrage is legal in most jurisdictions — it's a normal market activity that helps equalize prices. Always comply with your local tax regulations and exchange KYC/AML requirements.
When might a spread cover estimated costs? +
Fees vary by exchange and account tier. Many retail spot accounts charge around 0.05%–0.20% per leg, plus withdrawal and slippage. A gross spread above ~0.30% is a common starting screen — then use Check Real Profit to estimate your own costs. Estimates are not guarantees.
Is CoinNavigator free? +
The live scanner, calculator, comparison guides and blog are free to use. CoinNavigator also offers an optional paid Starter Pack and may earn affiliate commissions from eligible exchange links at no extra cost to you.
What is slippage and does it affect arbitrage? +
Slippage occurs when the actual execution price differs from the quoted price, usually due to low liquidity or large order size. For arbitrage, slippage on either leg can erode or eliminate your spread. To minimize slippage: trade coins with high volume, use limit orders where possible, and keep your trade size well within the order book depth. As a rule of thumb, keep your trade below 0.5% of the 24h volume.
Do I need to complete KYC to do crypto arbitrage? +
Most major exchanges (Binance, MEXC, Bybit) require at least basic KYC (email + ID) to enable withdrawals. Without withdrawal access you cannot move assets between exchanges. Complete KYC on both your buy and sell exchange before attempting arbitrage. For smaller amounts some exchanges offer limited withdrawal limits without full KYC, but this restricts your trading capacity.
Is crypto arbitrage profit taxable? +
In most jurisdictions, yes. Crypto arbitrage profits are treated as capital gains or ordinary income, depending on how long you hold the asset and your local tax laws. Each buy and sell is typically a taxable event. We strongly recommend keeping records of every trade (entry price, exit price, fees, timestamps) and consulting a tax professional in your country. CoinNavigator does not provide tax advice.