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This trader has made a profit of $40000, with the capital investment of $45000. This too is achieved using the stablecoins USDT and USDC. In between the trader has borrowed $40500 and with the swapping between exchanges has netted the profit of $40000 after paying a transaction fees of $2000. In simple the process involved in the trade is being depicted in a flowchart.

Source : coindesk (https://www.coindesk.com/first-mover-how-a-defi-trader-made-an-89-profit-in-minutes-slinging-stablecoins?amp=1)

https://i.imgur.com/FfHPQWy.png

Just finished reading the Coindesk article. Truly remarkable what that person did, as also pointed out in the article itself "Not bad for a few minutes of work. But just imagine how long it took for someone to figure this out."

And I think the second sentence is the key, it seems that this person was the first that did it to that extend with this setup. Truly something fantastically planed and executed, certainly with the necessary knowledge and financial background in case something goes wrong. Also, if you are a small investor and just trade around 10-20K or as most newbies do even lower then you aren´t even able to put of such a stunt financially as well as mentally. My experience is, if you aren´t used to big number they scare you and having 45K and taking a 405K loan is something not everybody would dare. Looking forward if they close that gap or if more people jumpt that bandwagon

@romero121 firstly I have never traded more than few hundred dollars, because crypto’s are very risky to trade in the short term, and secondly I also didn’t like the fact that he borrowed money to trade, because if his trade call would have gone wrong then he would have lost lots of money.

Furthermore @DoubleEdgeEx I believe that he’s an experienced trader hence he was able to pull this off, and therefore I strongly urge others not to try and copy him, because you’ll may end up loosing lots of money if your trade call goes wrong due to your inexperience.

This guy isn't some crypto trading genius.There is a 8.5% margin when trading USDC/ETH and ETH/USDT.This looks more like arbitrage trading.I assume that this 8.5% gap will be temporary so nobody else will be able to make easy profits.
I would never put 45,000 USD into one cryptocurrency exchange platform and I would never do leverage trading.
He isn't a genius,but he definitely has big money that he can afford to lose(or maybe he has balls of steel). ;D

I think it's very vital once. If you are a rich person who dares to spend the whole deposit may be possible, it is different if the trader who relies on profit without high risk. A thread that you make refers to trading at high risk. Perhaps the solution is capital Management.

This isn't the first time someone made big money while trading. Have you heard of George Soros? Some people call him "The man who broke the Bank of England" because he shorted the british pound and made a 1 billion GBP profit off of it, although that wasn't scraping it was more like long term trading in a matter of months.

Most traders show a great deal of respect for trading business as it has proven to be not just a business but a profession. Loads of people have fired their bosses to this effect and the reason is that they have a more profitable business coming from the trading skill. Traders make more than 100 percent in cases of pump in minutes and even more.

That's very nice I want to experience that someday so my money gonna go bigger and bigger so I can help to my parents to buy our needs I salute to the trader who experienced it right now you make a good job sir/madam

Scam scam scam.

Don't believe this crap

This kind of way you are feeling is the kind of way that someone can get into a wrong hand or platform that can deceive you and your money. You have to read it as such good experience. Bitcoin trading is a highly volatile market and it can throw in such profit if you are in better position. Me I'm not surprised at that.

There are levels; when talking about trade, this type of trade isn't common to the cryptocurrency market even though there have been records about traders make huge gains from their single trade. Share this information should be an educational purpose than instigation of newborn traders to give a try.

Believe me, nobody around this place have experienced this overtime but though taking profits base on their level of trade. I talking, do take profit base on my ability: just took profit from ARPACHAIN trade some few hours ago on Binance exchange(9%).

Well, go on and try it yourself. You'd find out the "89% profit in minutes" isn't as easy as it sounds.

Wonder why the guy shared this unbelievable strategy instead of using it to his own advantage? It's because if the guy really did make 89% profit in a matter of minutes, he probably was only lucky enough to do so and then failed to repeat the same steps. What happens if you borrow 405k USDC and never get to make the remaining 42k? How do you get to pay the borrowed money back?

This guy saw a window wherein he can exploit that huge of a gap and carefully executed the plan. It's not really common for someone to do that profit in mere minutes, but the matter on how the trader did it is pretty much been done by most of us here. Essentially, this is arbitrage trading, though involving different platforms that allow these seamless swaps in mere minutes, cutting the transfer time between two platforms by a huge number and making sure that the gap isn't closing in.

Personally I find what the trader did kinda risky, though ultimately it worked out for him. Imagine if he didn't execute his plan immediately and lose some minutes, he could lose his money in an instant.

I agree this isn't really a trading genius this guy is just loaded and have a knowledge about arbitrage trading and did it.
But let's just be happy for this guys achievement and successful trading.
It was an easy money for him and I think whales could also have those kind of easy profit by just scaring the holders and creating a FUD and FOMO.

There is no secret here, it's just the matter of execution + timing and of course your risk aversion. But majority of us here, are afraid to take that risk and doesn't have that much capital to play with. So in paper it really looks like the guy is a genius, but I will say that he is more ballsy in exploiting the gap in make that huge risk to get big reward.

Huge amount of risk and what he got is the rewards that most of us always dreams of.
It's a matter of how you understand what you are doing and how far you can go in risking your investment.

There are such kind of investors who combined their knowledge and balls to proceed and take the higher risk knowing that if they
succeed the outcome will be big for them to receive.

No secrets  but pure understanding and trust with their guts, end results very huge a mount of profits.

He did an arbitrage trading, if someone is confused about the loaned amount and the starting amount, that's why.
If he made it in minutes, then good for him as he made a fortune of his life within a few minutes. He has to make sure that he'll make good use of it and won't get rekt if he trades back.

Yes this was arbitrage trading like some of you have noticed but as much as I appreciate his guts and planning I also see that the whole system built on fake stablecoin trading can turn on us one day.

He made money trading usdt, a coin that is built of lies and probably used to manipulate the market. You can keep making fake money and lying about it but one day it will all come crashing down and those who will hold stablecoins at that point will lose like those who had money on Gox or BTCe when they went down.

Yeah that sentence resumes pretty much what happened tho.
I believe he thought about it, studied it then just waited for the best occasion to do it like a pro. Get a huge profit and ta da!

Even though it's remarkable, impressive and even a bit enviable, it's a process that I'm sure took months to perfect, and if you look closely, it's very much arbitraging, or as Morty says "it looks like arbitraging with extra steps", in my opinion, to find arbitrage oportunities this big and to get all pieces to fall into place there is a certain amount of leg work behind that we just won't know until we actually dig into doing it.

Getting 89% profit in minutes, of course, requires careful execution and it's not easy. When we buy coins and when we sell coins are determined by our decisions.
Looking at the flowchart, I saw that this person took the risky step of borrowing 405,000 USDC. And that's something I would never do as a trader. Borrowing money for trading capital is very risky.

My opinion that this trader makes use of a large amount of capital and therefore can profit in the short term or profit in minutes.
To be honest, I have never had such trading experience, maybe because I have a small capital. Imagine that 45,000 USD of capital
is a lot, and with that much capital it is only natural that the profit is also large. But trading using borrowed money is not a good idea,
what if you experience a loss. That's a sloppy thing to do.

His strategy is not for the feint of heart because it is really dangerous, it's a make or break in the next 89 minutes. Luckily he succeeded and that's why many are going to call him a wizard or genius.

But what if he fail, will he come back in this forum and bitch around? Lol.

His strategy is obviously not for everyone, not for the majority of average Joe trader here in this community.

if that's convincing, the trade seems easy. but I am not sure about the existing flow, because it is too fast and the profit is too big. maybe it can be explained in writing in length so that many people understand. Sorry

Flash loans are so mind-blowing, if you could understand how it works especially if you're a developer you could modify and explore more passive income and edit huge money making apps to custom code it, however you like to yield more benefits and generate more money.
This is why, i think ETH will soar to new All time highs because of this features when ETH 2.0 comes out.

In paper it really looks like very easy and seems that everyone could pull this off and make a huge profit. But in reality, it's not that easy at is sounds as obviously, you need big capital and you have the experience as well and nerve of steel, otherwise if you are a beginner and try this method, you might get nervous and instead of making money, you are going to lose in the end. So be cautious for someone who are going to imitate this strategy on their trading.

Hello to all. As they say in many countries of the world: "He who does not take risks does not drink champagne." Here is a classic example of huge risk but deliberate risk - this trader knew exactly what he was doing. At first glance, it seems that it is so simple, but I am sure that it is impossible to come to this in one day - it is obvious that such an action has been prepared for a long time, and of course this trader is a very smart person. This is what happens when you are serious and thoughtful about the matter. I am really happy for this person and I am sure that each of us can have such a chance. I'm not sure many of us would take such a risk, even if everything was calculated at 100%. Here - intelligence, risk, persistence, and here is the result.

Yes, maybe this could've been a long planned. Now the market might have moved as he calculated. Considering it the right time, the trade is being executed. With this trade what he has made is big. To achieve big the risk taken is something you and me can't think. Also these are pro players in the market, holding big backup of funds to risk for revenue.

this is a terrible article to both write and share here because it will make a lot of people think that making profit through 3 way arbitrage is easy and very profitable whereas in reality it really isn't. in majority of cases the difference between prices is too low to make a decent profit and most importantly the market is super volatile which means a price you see right now may not be the same price you see in a couple of seconds and buying/selling and transferring funds between exchanges takes more time than that. in other words the same trader could have easily lost 90% of what he borrowed which brings us to another huge mistake that he made, he invested the money he didn't even own and could not afford to lose!

They should have probably emphasized the term "skilled" when stating the trader in the said article. A profit of 89% is really good, not to mention that it was done in a matter of minutes, but the skill and experience required to even think of such an idea would have probably taken years to develop. Not to mention that the trader in talk probably has ample funds, much so that his investment in said trade could be afforded to lose. Plus, dude probably prepared for it quite well, waiting for such an opportunity to come. It's never easy to make a profit of $40k in minutes when the market we are currently at is very volatile. It didn't also take only skill imo, an immense amount of luck was used up here to even successfully manage to pull it off. One wrong move and he could've basically lost a lot after all.

Wholeheartedly agreed. That person was a pro. Also thanks again for the Warning, I think that can´t be emphasized enough to stop all-too-greedy newbies to try it themselves.

@ NotATether - Nathan Rothchild was the one that pulled of the stunt with the Bank of England. Here a pretty cool article about it: https://medium.com/hackernoon/the-evolution-of-money-the-phantom-menace-of-the-rothschild-banking-episode-3-4f4bb8c812e1

I never traded using that such big money, especially that is not using the exchange that I already used. He dares to take a risk that big amount of money, but suddenly, he make a huge profit. I am sure that he has high-skill in trading so that he can make that huge profit. That is a very lucky person who is at the right time and in the right place.

Only a few people like him that can trade well because without having high-skill in trading, he will not be able to calculate the risk, and manage the risk. It is one example of the pro trader, but I wonder who he is.

This was a bit confusing for me but I think I get the gist of it,,, but is this not basically called arbitrage trading? Arbitraging not so much the price of assets but the swapping rates. Pretty clever,,, and now of course that people are reading it they will try for it. I bet you exchanges earn more from people who try and fail than those who try and win:)

Read this article yesterday. On one side it's too much presence of mind exercised by the trader but we cannot deny the fact that this was due to a inherent flaw in the system. These USDC,USDT and other Dollar tethered currencies have always been in some attention due to their lack of stability. But yes I must say there was a huge ridk involved on part of Trader too. But I don't know I am not able to join ends who would compensate for this loss made by the arbitrageur? The platform definitely won't suffer I think it would be the other people trying this stunt who will face a loss.

Exactly, another click bait article, and what will it do? bring more harm to traders specially they think that is it very easy to do arbitrage with the mention coins. But in truth, these 3 way arbitrage is not practice that often because you really need to be quick, and because the price is unstable, in matter of minutes your supposedly profits might turn into dust, very misleading article.

I would like to see if he had lost money if they would create an article talking about the loss he had, these types of articles are very bad for the cryptocurrencies market, and this is exactly the main argument that governments and banks use to criticize bitcoin and it was for This is why we had the disaster of 2017 and the beginning of 2018 because people invested in ICOs thinking that they would become millionaires in a few days and others sold things to make trade because they thought that trade would make them millionaires in a few hours, but in time they realized the hardship reality and lost money

This is more of an arbitrage trading but as a trader, getting 89% profit in just a few minutes isn't that easy to get.

Well, when I'm still trading I didn't experienced getting profits as huge as that. Probably there are some good traders who got that profit but not in a span of minutes unless they are a good arbitrage trader too like the one OP has been shared. There is one way to get profit as huge as this or probably higher. Ride with the whales when they pump and dump a coin :D.

 ;D ;D ;D ;D ;D ;D not just his balls, maybe his brain made of quantum computer

but seriously that was a big money 40.000 is fund of entire bounty nowadays

i just curious what will happen when they borrow some money and the eth price goes down like hell :(

its like paying debt for entire life

  I would like to point out he did not invest 45000 he spent 45000 out of pocket.  He took a loan of 405,000 and if the market decided to fully tank
he would lose the 45000 and part of or maybe all of the 405000 he borrowed.
  So it is misleading to say he turned 45000 into 85000 since he was responsible for a 405000 loan.

That was a good read, and that's also a huge profit he made after the Napoleon battles (at the time) from 500K pounds to 1 million pounds, but I was referring to Black Wednesday in 1992 when Britain took the pound out of the ERM because of speculators.


That equates to 405,000 (9x) + 45000 (1x) = 450,000 traded at 10x leverage, and the amount he hedged with his own money was very risky since the loan was so big no exchange will ensure that entire amount. It's also ironic that high leverage is a selling point of many exchanges that you see them advertise but if someone were to trade with that high leverage and lose, the exchange itself can lose a lot of money even with average sized user funds.

He was lucky enough to have a discount of @ 8.5% to USDC. That's what gives him a lot of advantages. and the profit scheme that he created will not be replicated a second time. Making a profit in just a few minutes is quite crazy and extraordinary, moreover, the money he uses is money from loans that have a large risk. This man is probably a professional and already aware of the risks.

A truly remarkable strategy and I can say that he did quiet a stunt even if strategy is not that risky as it involves only 3 currencies that are very famous currencies. But small investors
can't pull this kind of move the same with traders who are not willing to borrow such a huge amount just to execute this kind of strategy.

But I wonder if there are traders who follow this strategy and also earn a huge amount of profit because this strategy will be effective only once the market is moving upward, meaning you need
to hit the right timing in order to make this strategy work.

similar to bitcoin arbitrage, but it takes advantage of the difference in the price of three digital currencies. I really appreciate the genius of this person, because in addition to sharing knowledge about several methods of getting money, he can also show that taking risks is more fun if it is according to our expectations.
because the origin of the funds comes from loans, so at least we also have guarantees to be able to make these loans

Nothing special here just another prove showing again why the crypto space is one of the very few avenue out there you can cashout big time if you are lucky to have the required information, seizing the opportunity as they present themselves. Few minutes before logging into the forum, I took some look at Binance exchange and saw a coin name $sand giving a return off over 800% in matter of minutes after it got listed. I think that's beats that of the 89% profit.

The market is just filled with opportunities to profit from but you don't rush into it especially when you're not informed if not you'll likely end up losing all your capital.

These "discounts" could be profited off at any point where stablecoins go either above or under their supposed value, but a lot of traders (especially trading bots) have learned their lesson so before you get to take the profit from these price changes, you probable have thousands of bots doing it before you. So he probably even used a bot to do all of this in "minutes".

the 89 is %, not minutes

I doubt that person will people like him usually have money to spend. bitching in this forum due to his own fault will bring him nothing.

it is a high-risk high reward not many people will do it even if they can afford it, but I would probably do the same If I can afford to lose that much money, but I would probably be shaking while doing it.

This can be a proof that new strategies can always pay good rewards to the traders so don't keep doing the old things by following others, try to explore the new opportunities.This maybe done in minutes but this may take lot of time and effort to figure this out and he kept it secret until he made that rewards and that is how traders are more successful when they are not revealing their secret strategy.

Great read.

This guy just took arbitrage to the next level.

I think that it only works when there is a sufficiently large gap between stablecoins prices. In this case, there was an almost 10% gap between USDC and USDT—this is almost unheard of.

He then multiplied that difference up by borrowing on leverage, and pocketed the difference.

Before other people start thinking they'll get rich by doing the same. They would have to be on the lookout 24/7 for this, or at least set up some alerts.

Well, arbitrage trading is very risky. They say, --if you will be risked a big amount it will return a big profit.
Nothing is new here, that is very common and actually that trader is willing to risk big amounts and borrowed money for that trading. This is not recommended if you dont have experience in trading, you perhaps like a double edge sword once you have mistakenly input on exchange. Did you know that trading is a sort of gambling, that guy is very lucky to earn profit in an arbitrage strategy.

Its indeed an arbitrage one and we know that these kind of steps should really be done on precise manner or else it would surely cost you.This guy has indeed a ball of steel
on where putting up 40k on an exchange and making out transfers on several platforms would really be that stressful due to the fact that you may face up some fund holds or similar scenario.
Its actually possible but not all does have the money and the courage to take risk on such step but this man proves out that if it done and executed well then making money will
really be that simple but a very very risky thing.

Yes, maybe, because bots provide convenience and speed in executing transactions that are needed and have been pre-set. Maybe he was also a programmer who built his own bot which would be of great benefit. An 89% gain in minutes will pay off all the hard work it does.

Quite a lot of money to trade. I never sent that kind of money to the trading platform. The risk with big money in exchange will be higher. To get 89% profit in minutes is possible when you have a good and professional trading strategy and analysis. Even more than 100% profit can be obtained when FOMO takes place. This person also takes advantage of several discounts that are given to multiply their benefits.

You may pump any low profile altcoin to profit even 100% when you are equipped with massive amount of BTC/ETH.

Recently LINK/WAVES/WRX/DGB are pumped up to 30% to 60% and when you are having big capital then you can push further rally and may book profits before everyone else will do. This is how whales do trade and trap small traders. But, I cannot assure about to achieve anything in minutes but big level of profits will be possible if you are able to manipulate the direction of markets.

Honestly I have never experienced the any such big profits like 89% in very short term but my bitcoin holding has got me more than 1000% profits in 3 to 5 years of holding.

And you haven't had to borrow $400k to do so (hopefully). Think about it: whoever bought 5 years ago BTC under $200 now has more than 6000% profit. Imagine borrowing $400k and making a trading mistake - you'd screw up your entire life.

First of all this guy starts with a large amount himself, he then tops that up with some more borrowing and technically takes advantage of the price disparity between USDC, ETH and USDT. In this process ETH showed an uptrend, so the guy got lucky as hell.

After this crazy bump and profit, he sold out ETH -> got USDT then back to -> USDC, payed off the loan and retained the remaining profit.

Overall, this shows strategy combined with a lot of risk by borrowing and starting big and also getting lucky. Not so reproducible after all.

We see an example of a very profitable operation that is also very risky. The cryptocurrency market is very volatile and it was enough to change the price by hundredths of a percent, and the trader instead of making a profit of $40,000 could get a loss equal to his deposit.

I think if this was something so easy as people make it out to be, people would do this constantly, I like things looking good in paper but I would like to see it in exchange live as well if he has the same courage to do that once again with proof. Open up a youtube account, create a video detailing how you do it and just show it on your screen and do it for real and prove that what you are saying is actually possible, then I will believe it.

Right now this looks good on paper to someone who doesn't know how it works, but if it is such a great and easy thing why doesn't that person do it constantly without a stop 7/24 so that he could have tens of millions of dollars in profit? If it is such an easy thing he wouldn't just share it, he would keep it a secret and do it over and over again.

I do consider it to be lucky and wise at the same time.These kind of circumstances or chances doesnt really pop out too regularly and when the time
this fella able to see those opportunity then he did really made an splendid job on arbitraging even though on the amount we've been talking is big
and its way too risky on making transactions into those amounts.

When the time it had been discovered then those big gaps will surely be gone and chances arent there for them to follow the same step. ;D

It's interesting and exciting to see this but their is big risk too. Making profit in terms of percentage is not much interesting but in terms of money it's really big amount. I made 100 percent roi through trading on binance future but I don't have such a big amount to take such kind of risk. Its just depend on capital and your holding capacity. Leverage trading is very risky and have great possibility. Personally I never go more than 3x leverage and still its makes me worried because market is very unstable and the people in the trade in future better known that how quickly price go up and down to liquidate your fund.

89% profit is really awesome but I don't have that steel balls to try it even it looks interesting with that huge amount. Maybe it sounds crazy for me to try it and only a few of them had made it to succeed coz we all know that it seems impossible but somehow he make a try and boom. He is a LUCKY person, a trader who has a strong spirit in crypto and he truly believes himself without any hesitation.

I really see it too much courageous but I'm not totally a risk-taker to spend a lot of money on just one coin. I'd rather have to spread it to other coins for safety assurance than to lost that easy.

Even in small amount we will be able to gain profit, but it's more exciting if we have a bigger amount to trade. This Quarantine I do try trading to study I try BTC perpetual with just a small capital and that time the price of BTC is really increasing that I almost experience 80% profit but it just maybe because the price of BTC is really increasing, it will still depends on the time we trade.
I admire those who are risking high amount, they were maybe confident in their skills in trading.

Indeed. Even we will only use a small amount of profit in trading, and we could gain a bigger profit, as long the market would be in favor of us. But trading a more significant profit would be a big opportunity for us this quarantine because the crypto market is becoming more stable and growth, so risking it might give most of us a chance to experience an 80% profit.

When you are trading you are not going to earn money on each and single one of them, sometimes you will make money and sometimes you will lose money, in the long run you could make a profit after certain amount of trades but it could be up and down before you reach a higher level.

It means if you start with a small amount you could make it a big amount eventually but be ready for downs time to time plus be ready that it may take a long time before you can reach the desired amount you want to reach, because you can't turn 100 dollars into 1 million dollars in a day, it would take decades and that is only if you can even achieve it, most people can't because it is such a huge and difficult task. At the end of the day patience is the key word that would help you along the road to getting richer.