Blockchain

2022-07-05T03:16:32.863Z

Each blockchain network is a complex system of blah blah blah…

The first, if not only, thing you need to know about blockchain in arbitrage is that we use it to transfer crypto between different exchanges.

To be more specific, transfers are done between wallets, holding unique addresses, assigned to different users on different exchanges.

This is example of address on TRON blockchain: TBuN9oyfMV4GnbnZdfCCWToUcWpYDPeHHT.

Summarizing, when you wish to send crypto to your friend for dinner: you only need to know the recipient's wallet address on the chosen blockchain network.

These are my favorites amongst the networks:

1. TRC-20 based on TRON blockchain, fast (2-5 minutes), cheap ($1 fee) and most efficient in my experience

2. BEP-20 (or BSC, Binance Smart Chain) created by Binance, also fast and cheap (2-5 min; $1 fee) but sometimes experiences delays

3. ERC-20 based on Ethereum blockchain, the most popular one, sometimes the only network available on smaller exchanges. Yet the most expensive one ($10 to $30 fee) and slow (7-15 min)

4. BTC based on Bitcoin blockchain, the oldest one and the slowest one (10 min up to 2 hours)

Pro tip. You can check the status of your transfer through the following links:

https://tronscan.org/#/

https://bscscan.com

https://etherscan.io/tokens

https://btc.bitaps.com

Simply enter the recipient's address or Txn hash (transaction confirmation number) in the search field and you will see all the details about the transaction and the recipient, as the one of the main rules of blockchain is transparency.

Basic rules to avoid losing all of your money.

2022-07-05T01:47:33.195Z

First of all, when working with multiple crypto platforms or with clients, you need to be able to transfer money, the crypto assets, between those exchanges. The transfers are performed by sending crypto from one wallet to another through a chosen blockchain network.

Caution, spoiler! Sending crypto to a wrong wallet address or through a wrong blockchain will lose all of your money!

Say, your TRC-20 address on Binance is TNsiS2CkPAYfYxHEyRnVnmL2yRiZ2MxU4q.
Now, what is TRC-20? It’s a network based on TRON blockchain (you can read more about it in the Blockchain article).

If you enter an incomplete address, for example: TNsiS2CkPAYfYxHEyRnVnmL2yRiZ2~~MxU4q~~, it goes either to someone else or to nowhere.
When selecting a blockchain network, and given options of TRC-20, ERC-20 and BEP-20, make sure your finger doesn’t accidentally slip to the wrong one.

We all have, at least once, imagined checking the balance of bank account or crypto wallet and seeing a new coming deposit of $100,000, just out of nowhere. And yes, that’s actually happened to me ($89,000 showed up one day) but that’s for another story. Yet, the morale, no one wants to be the person to lose a 100 grand on one stupid mistake.

So, my advice is to triple-check everything before hitting "SEND".
And one more custom advice (actually that’s a method used by big cash-to-crypto exchange offices) is to read out at least the first 5 and the last five symbols of the address where you are sending your crypto assets to be sure that it's the right one.

Next, the major benefit of centralized crypto exchanges for P2P traders: escrow.
Platfroms, primarily known for their peer-to-peer trading, like Binance, Paxful and LocalBitcoins, offer their users an additional level of security, yet still keeping it anonymous. Escrow systems protect everyone involved in the trade. To initiate the trade, the system makes sure that you actually have assets in possession to sell and does not release them until you confirm that you have received payment. In case of a dispute, moderator from the platform checks the proof of payment from both sides to verify the validity of an argument.

In case someone tries to scam you in broad daylight or you have ground to believe that is happening, don’t hesitate to call the moderator into the trade. It’s your safest option.

Summarizing, instead of performing trades with random users in good faith, no matter how good their reputation is or how many times you have traded before, and just sending money or crypto to the given requisites, hoping to get something back - trade through escrow!

Artem Mishin

Blockchain

Basic rules to avoid losing all of your money.