Disclaimer: this strategy introduces custody-risks, so bet what you can loose.

Requirements

  • Above 1k$ USD on a paper exchange.
  • Above 1k$ USD worth of XMR on a DEX.

The market-making strategy

Both exchanges are both making books for you

  • Paper XMR exchanges as buying order-books.
  • DEXs as selling order-books.

With price differences, you can make hundred in profits on a thousand dollars. While making decentralized & NoKYC demand more liquid.

  • shortwavesurfer@monero.townEnglish
    3·
    8 months ago

    How would you withdraw from the paper exchanges? Generally that means those exchanges are selling fake monero and wont let u withdraw ala binance

    Edit: if u cant withdraw the trade doesnt work. The premium in south korea would allow this too, but its difficult to get their fiat out to a world exchange to buy the crypto back after selling for the premium in sk.

    Edit 2: this would also require selling for fiat on the DEX. So unless you do cash by mail you may get a nice visit from jack booted thugs in suits to throw you in a cage as a “money transmitter”

    Edit 3: you can probably do this once or twice a year without issue, but doing it constantly will end badly.

    Edit 4: with a 10% spread you could make $200USD a year doing this if you only do it twice a year. Doesn’t seem like much. Now in a country where the black market is way more prevalent such as Argentina this may work quite well.

    Edit 5: if enough people did do this it would yank the CEX prices up to the real price, but it would take many people to do it.

    • Nononynous@monero.townOP
      1·
      8 months ago

      Edit 2: Buy pXMR/USD(T) -> Sell XMR/BTC

      Edit 4: The amount were took as an example I don’t want people to move millions at risk. But there’s big benefits, if you make trading activity over arbitrage.

      But the main problem of that strategy, is the very low allowed threshold under their withdraw haltings (all platforms).