Cross-exchange arbitrage with a transfer: which network to use
In spot arbitrage you buy a coin where it is cheaper, move it to another exchange and sell it higher. Half of the outcome is not the spread but the transfer: the network decides what the withdrawal costs, how long you wait and whether the price will wait for your coin. Here are the networks, the checks before a transfer and the common mistakes that lose money or leave it stuck.
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Why the network matters more than it seems
The same coin can often be withdrawn over several networks. USDT, for instance, lives on Tron, BNB Smart Chain, Ethereum, Solana, Arbitrum, Polygon, TON and more. Withdrawal fees differ tenfold and more, and arrival times range from seconds to an hour. A 1% spread is worthless if the withdrawal costs 1.5% of the amount, or if the price on the other exchange caught up while the coin was in transit.
The withdrawal fee is set by the exchange, not the network. It is usually fixed in coins and does not depend on the amount: withdrawing $50 costs the same as $5,000. So for small amounts the network choice decides everything, while for large ones speed and reliability matter more.
Popular networks compared
| Network | Typical withdrawal fee | Arrival time | Good for |
|---|---|---|---|
| TRC20 (Tron) | ≈ $1 | 1-5 minutes | Moving USDT between almost any exchanges |
| BEP20 (BNB Smart Chain) | up to $0.5 | 1-3 minutes | Cheap, many tokens, supported by most exchanges |
| ERC20 (Ethereum) | $3-15 and more | 2-10 minutes | Only large amounts, or when nothing else is available |
| Solana | cents | under a minute | Fast, but not every exchange takes every coin on it |
| Arbitrum, Optimism, Base | cents - $0.5 | 1-5 minutes | Cheap, but exchange support is patchy |
| The coin's own chain | varies | minutes to an hour | The only option for many altcoins |
Figures are indicative: exchanges change their fees and times grow when the network is busy. Check current numbers before every transfer.
What to check before the trade
Withdrawals open on the buying exchange
Exchanges routinely pause withdrawals of single coins for maintenance. A spread on a closed coin often exists for exactly that reason: money cannot leave, and the price lives a life of its own.
Deposits open on the selling exchange
The same check on the other side. A coin sent to a closed deposit can be stuck for a long time.
The same network on both sides
Sending over a network the receiver does not support is the most common way to lose money. Addresses on different networks can look identical (Ethereum and BNB Smart Chain, for example), but the funds will not be credited automatically.
The same token contract
Some coins exist on one network under different contracts - an old and a new one. An exchange accepts only its own.
Fee and minimums
Compare the fee with the expected profit. Many coins have a minimum withdrawal and a minimum deposit.
Tag or memo
For XRP, TON, ATOM, XLM, EOS and several other coins a deposit without the tag cannot be credited - the money lands on the exchange's shared address with nothing saying whose it is.
Example: one route, two networks
A coin is 1.2% cheaper on exchange A. The trade is $500. The coin can be withdrawn over ERC20 for $6 or over BEP20 for $0.30. The trading fee on each exchange is 0.1%.
| Gross price difference | +$6.00 |
| Trading fees, 2 × 0.1% | −$1.00 |
| Withdrawal over ERC20 | −$6.00 |
| Result with ERC20 | −$1.00 |
| Withdrawal of the same coin over BEP20 | −$0.30 |
| Result with BEP20 | ≈ +$4.70 |
The same route is profitable or not depending on the network. On $5,000 even ERC20 would leave a profit: the fixed fee spreads over a larger amount.
Time is a cost too
While the coin travels, prices keep moving. The longer the transfer, the bigger the chance the spread closes or flips. This applies especially to networks that need many confirmations: an exchange may wait for dozens of blocks before crediting a deposit.
A common answer is to keep coin and USDT on both exchanges. Then buying on one and selling on the other happen at the same moment, and the transfer is done later, without hurry, only to rebalance. The spread is locked in at once and the waiting risk disappears. The downside: money has to sit on two exchanges at once.
Common mistakes
- Choosing a network out of habit without comparing fees: ERC20 where TRC20 or BEP20 is available.
- Forgetting the tag or memo for coins that need one.
- Not checking deposit status on the second exchange and sending the coin "into a wall".
- Ignoring the minimum withdrawal and getting stuck with a remainder on the first exchange.
- Counting profit at the top of the book without checking depth for your size. More on that in why the spread is not your profit.
For every route the scanner shows the networks the coin can be withdrawn and deposited over, their fees and approximate times, and flags withdrawals or deposits that are closed right now.
Glossary
- Network (blockchain) - the system the coin moves through: Tron, BNB Smart Chain, Ethereum and others.
- Token standard - the coin's format on a network: TRC20 on Tron, BEP20 on BNB Smart Chain, ERC20 on Ethereum.
- Confirmations - the number of blocks after which an exchange treats a transfer as final.
- Tag / memo - an extra recipient identifier on an exchange's shared address.
- Token contract - the token's address on a network; one coin may have several on the same network.
Transfers between exchanges FAQ
What is the cheapest network to move USDT?
Usually TRC20 and BEP20: about $1 or less at exchanges. ERC20 is almost always more expensive. What decides, though, is which networks the receiving exchange supports.
What happens if I send a coin over the wrong network?
The money is not credited automatically. Sometimes the exchange can return it through support for a fee, sometimes not. Check the network on both sides before every transfer.
Why does a transfer take so long?
The exchange waits for a set number of confirmations, which come slower when the network is busy. Withdrawals may also pass a manual review on the exchange side.
Do I need a tag when sending to an exchange?
For coins that use one (XRP, TON, ATOM, XLM and others) - always. Without it the exchange cannot tell whose account to credit.
Can I avoid transfers altogether?
Yes: keep coin and USDT on both exchanges and trade simultaneously, rebalancing with a transfer later. Or work with futures, where no transfer is needed - see funding rate arbitrage.
Why does a coin show a big spread but the scanner does not suggest it?
Often withdrawals or deposits are closed on one of the exchanges. The spread exists precisely because money cannot cross between them.
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