A Twitter user with the account name Firefly recently shared his reading strategy with his seven thousand followers. On Friday, Firefly revealed that he had made over $1.4 million in the past five months from arbitrage trading.
Following his success in trading, several followers have requested the blueprint to make similar profits. Firefly explained that a basic understanding of web3 development and knowledge about the crypto market was essential for success.
Firefly’s Trading Methodology
Firefly urged his followers to learn Python for a start. After gaining knowledge of Python, they could move on to a more advanced programming language like Rust.
Like traditional markets, the prices of assets usually have slight differences across various CEXs and DEXs. Firefly has used this to his advantage, buying cryptocurrencies on exchanges with lower prices and selling on exchanges with a higher price.
The main blockchain used by the crypto trader is the Solana blockchain. Transactions are swift on the Solana blockchain, making it easier to make profits before prices readjust.Â
The crypto millionaire also acknowledged utilizing an arbitrage bot to make profits. The bot uses the Jupiter aggregator to find profitable swaps.
Firefly does a graph search to find algorithms, where exchange pairs are nodes and trades are edges. After that, he optimizes his validator, routing algorithms, and on-chain contracts. This helps put his profit system ahead of the competition.
Notably, many arbitrage traders around the globe look for similar opportunities. Like many other trading segments, the early bed gets the giant worm in arbitrage trading. The price difference between currency pairs usually reduces when an increased buying pressure matches the selling pressure. Thus, many traders will need to be fast to profit from this training style. Arbitrage bots also need to be optimized to get the best profit margins.
While crypto prices are down, traders can still make huge profits from this trading system.
