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How I Earned 25% of My Capital In 1 Week: The Art of Arbitraging With Swapnex

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9 months ago

An Introduction To Arbitrage

According to Investopedia, arbitrage is defined as the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset’s listed price, exploiting short-lived variations in the price of identical or similar financial instruments in different markets or in different forms. In simpler terms, arbitrage is the process of buying an asset low on one platform and selling it high on another platform, making use of the price discrepancy between the two.

The Problem

In the context of cryptocurrencies, given their liquidity and ease of transfers over blockchains, it may seem appealing to manually practise arbitrage, by buying a cryptocurrency cheaper on a platform and selling it on another where it is priced higher. However there are a few problems associated with a manual arbitrage trade such as the following:

  • Trading costs are incurred during the purchase and sale of the asset.

  • Transfer fees are incurred during the transfer of the cryptocurrency from one platform to the other.

  • The price deviation of assets between different platforms can cease to exist within minutes — effectively nullifying any potential profits and may even incur losses if the said asset dips in value over the short period of time it takes to transfer from one platform to another. Put another way, because transaction speeds and liquidity change quickly and unpredictably, catching the right moment to open or close the order would be almost impossible.

  • The price difference between the 2 platforms is not significant enough to make a profitable arbitrage opportunity.

  • It is time-consuming to manually identify arbitrage opportunities and to execute the trades.

The Solution?

It would be ideal if a trader can leverage a platform with multiple positions across different exchanges, and hence a large pool of liquidity, to simultaneously execute arbitrage trades to benefit from the price discrepancy of digital assets that exists between these exchanges at that particular point in time, to generate profit. As such, arbitrage trading is most profitable when performed by a large centralized financial institution which can track price differences across different cryptocurrency exchanges, and with a great amount of liquidity spread across these exchanges, can automatically perform arbitrage trades almost instantaneously; in contrast to having to manually move the funds across various different exchanges to perform the trades.


Swapnex is a multifunctional arbitrage trading platform that has access to a wide range of cryptocurrency exchanges such as Binance, Coinbase, Bithumb, Kraken and many others. Founded in 2020, Swapnex is headquartered in Level 1, 2–26 Park St, Sydney, Australia, with an official registration with the ASIC as shown below.

Swapnex is able to perform arbitrage trading effectively and profitably as they have a large pool of liquidity spread across these different exchanges.


Swapnex offers free and paid plans as shown below.

How To Start Arbitraging?

After signing up, head over to the dashboard, which is presented in a somewhat grotesque green appearance, toggleable to an alternative dark mode.

Swapnex supports arbitrage trading of most of the mainstream cryptocurrency coins. Account balances appear under the ‘Wallet’ section, whereby different cryptocurrencies are listed along with its blockchain.

To deposit funds into your account, first enable 2 factor authentication, then click add balance on your cryptocurrency, taking into consideration the blockchain over which you want to transfer your funds. As a practical example, choosing to deposit USDT over the tron or binance smart chain will save you deposit and withdrawal fees later on, compared to the Ethereum network (yes, currently withdrawals are free for USDT over tron and BSC!). Enter your desired deposit amount and click top up.

This leads to a subsequent dialog box which gives you a QR code to scan/ address to deposit. Take note of the selected network for transfer of funds, and the implicated withdrawal fees on the part of your sending wallet.

The balance is usually reflected in your Swapnex wallet within a few minutes of a successful transfer.

Initiating A Trade

Head over to the ‘Trading’ section, where trades can be opened manually, or left to the AI for automatic trading.

Manual trading
Automatic trading

Simply select your arbitrage pair of choice. Each trade has a minimum deposit amount depending on the cryptocurrency of choice, such as 50 USDT for USDT trades. In my case, I deposited 200 USDT over the tron network, and initiated 4 different automatic trades each of 50 USDT using BTC, ETH, BNB and TRX, on a free plan. Automatic trades are offered in fixed tenures ranging from 30 — 360 days, each with a different number of trades per day — the most worthwhile in my opinion being the 60-day plan, whereby your funds are locked for a period of 60 days while it undergoes the automated arbitrage trading, executing 3 orders per day. The rewards generated are added daily to your wallet balance, which you can either choose to reinvest or withdraw.

My Results After 1 Week: 25% Return of Investment!

The returns were quite impressive; I have earned a handsome 28.22 USDT from my initial investment of 200 USDT in just over a period of 1 week! An awkward 5.54 USDT was reinvested when I created my latest arbitrage pair using TRX as shown above, which hence resulted in 54.54 USDT for that particular pair. The remainder of my profit amounting to 23.68 USDT was withdrawn to my Huobi account, for the purpose of testing the platform. The withdrawal was completed within 5 hours as shown below.

The account balance from which I withdrew

Withdrawal request reflected on my transaction history
Received an email - withdrawals are processed manually
Withdrawal reaches my Huobi wallet 5 hoours later!

An Evaluation

Swapnex has a rather favourable rating on Trustpilot, with a wide social outreach on their blogmediumTelegramTwitterYouTube Facebook. Upon performing a Google deep dive into Swapnex, you might find its affiliation to Now2Trade, an arbitrage site that has turned scam, by virtue of traffic being redirected from the Now2Trade site to Swapnex which hence seems to link these 2 companies together. However, Swapnex has reaffirmed that it is not affiliated to Now2Trade in any way, and that the traffic redirection was done with a malignant intent to tarnish their reputation. Read more about this here on their blog.

Final Thoughts

Swapnex presents a rather profitable and enticing earning opportunity from arbitraging trades. Based on my current rate of earnings, I should theoretically be able to recover my initial investment in a period of just over a month. If you’d like to give it a try, you can sign up here and start your journey of cryptocurrency arbitraging! However, a note of disclaimer: I do not endorse the platform but am simply sharing what I have found so far with it; please do your own research before investing! I highly appreciate any thoughts or feedback that you have to share regarding Swapnex. I will also be posting a follow-up review of Swapnex in the near future, possibly with a detailed tutorial after getting more acquainted with the platform. Happy earnings!

Some relevant resources to check out:

Information Leaflet

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As always this is not financial advice! But simply investment platforms I have invested in and have found worthy of sharing with. Do your own research before investing and never deposit money you cannot afford to lose. Feel free to ask me any questions below.

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