Mistakes can be costly in arbitrage, especially when dealing with volatile markets or large trade sizes. ArbiHunt is designed to streamline the process and minimize risks, but success still depends on executing trades with precision. This guide highlights common errors users make when using ArbiHunt and offers actionable tips to avoid them.

Misinterpreting Arbitrage Opportunities #

A common issue is misreading the data displayed in ArbiHunt. Users sometimes overlook critical details, such as the network involved or trading fees, which can drastically impact profits.

• Tip: Always verify the network compatibility between the exchange you’re withdrawing from and the one you’re depositing into. Mismatched networks can result in lost funds.
• Example: If you’re withdrawing a token on the ERC20 network but mistakenly deposit it into a BSC address, the transaction may fail or result in permanent loss.

Underestimating Trading and Withdrawal Fees #

One of the biggest mistakes is failing to account for fees, such as withdrawal fees, trading fees, and deposit fees. These costs can eat into your profits, particularly for low-margin trades.

• Tip: Review all fee structures on the exchanges involved before proceeding with any trade. ArbiHunt provides visibility into the withdrawal fees to help you plan better.

Overlooking Liquidity #

Liquidity determines how quickly and effectively you can execute your trade. Low liquidity can result in partial fills or significant price slippage, reducing profits.

• Tip: Use ArbiHunt’s liquidity score to assess whether the trade size you plan to execute is realistic. Avoid trades with low liquidity scores, especially if you’re working with large amounts.

Rushing Trades Without Using Limit Orders #

Market orders can lead to unfavorable prices, especially in volatile markets. Users often rush trades using market orders, only to realize later that slippage significantly impacted their profits.

• Tip: Use limit orders to control the price at which your trade is executed. ArbiHunt provides insights into order books, allowing you to make informed decisions.

Neglecting Real-Time Updates #

Arbitrage opportunities can vanish within seconds due to market fluctuations. Some users miss out by acting too slowly or by relying on outdated information.

• Tip: Keep ArbiHunt open and refresh data regularly to ensure you’re acting on the latest opportunities.

Ignoring Minimum Capital Requirements #

Starting with insufficient capital often leads to frustration. Many users attempt arbitrage with amounts too small to cover fees or capitalize on significant opportunities.

• Tip: Begin with at least $300, as this is the minimum recommended amount for effective arbitrage. For consistent profits, aim for $1,000 or more.

Failing to Complete KYC on Exchanges #

Most exchanges require KYC (Know Your Customer) verification for deposits, withdrawals, or higher trading limits. Users who skip this step often face delays or restrictions during trades.

• Tip: Complete KYC verification on all the exchanges you plan to use before starting arbitrage. This ensures smooth and timely transactions.

Overlooking Supported Networks #

Some users attempt trades involving unsupported networks, resulting in failed transactions or lost funds.

• Tip: Double-check network compatibility for both deposits and withdrawals. ArbiHunt clearly displays supported networks for each token, making it easy to verify.

Confirming Contracts to Avoid Mistakes #

When trading, it’s critical to confirm that the contract addresses for the coin you’re dealing with are identical across exchanges. Some coins may share the same name but represent entirely different assets, leading to potential losses if the wrong coin is transferred. With ArbiHunt PRO, we simplify this process by fetching the contract addresses directly from the exchanges for you. This ensures that you’re always working with the correct asset and reduces the risk of errors in your arbitrage trades.

Trading During High Network Congestion #

Network congestion can increase transaction fees and delay processing times, causing arbitrage opportunities to vanish before completion.

• Tip: Monitor network activity and prioritize trades during periods of low congestion. ArbiHunt helps you identify optimal times for trading by providing network-related insights.

Attempting Arbitrage Without Basic Trading Knowledge #

Many users jump into arbitrage without understanding trading fundamentals like order types, reading order books, or calculating fees. This often leads to costly mistakes.

• Tip: If you’re new to trading, take the time to learn the basics through online resources before using ArbiHunt. A solid foundation will improve your success rate and confidence.

Overconfidence and Oversized Trades #

It’s tempting to go all-in on a promising opportunity, but this increases the risk of loss if something goes wrong. Users sometimes overestimate their skills or market conditions, leading to errors.

• Tip: Start with smaller trades and gradually increase your trade size as you gain experience. ArbiHunt’s tools are there to guide you, but prudent decision-making is key.

Use ArbiHunt Effectively #

ArbiHunt is an incredibly powerful tool for identifying and executing crypto arbitrage opportunities. By avoiding these common mistakes, you can maximize your chances of success and minimize unnecessary risks. Take advantage of ArbiHunt’s advanced features, like real-time data, liquidity scores, and detailed network information, to trade confidently and efficiently.