Crypto exchanges are getting more scarier to use recently because of the insolvency of these exchanges recently. I have written post about how my arbitrage trading activity has been going, so it’s part of what I do. Arbitrage trading requires buying coins from one exchange at a cheaper rate and selling it at another exchange at a higher rate. You make profit from price differences and you make more money if you are using a blockchain with fast transaction time because of volatility and timing.
My job has been to find crypto exchanges, register, do my KYC and start trading. I am not planning on storing my money there, just quick trade in and out. I have done my research for lots of exchanges like knowing their trading fees, minimum deposit and maximum withdrawals but you can never know it all, until you experience it yourself. Finding arbitrage trading opportunities is really difficult because it requires patient, so you need to wait and find them.
I go to coingecko to look for random cryptos, look for their price differences across all crypto exchanges and I found an opportunity in LUNAC(Luna Classic). It was 2% cheaper in Binance than in the poloneix exchange. What an opportunity, but I have chosen to never touch any of the Terra project for obvious reasons. But then, I wasn’t planning on hodling them for so long. It was supposed to be a quick trade, besides, LUNAC has been extremely volatile recently.
I bought some LUNAC on Binance and sent them to Poloneix exchange, unfortunately the price of LUNAC dipped the moment it got to Poloneix exchanges leaving me at a $10 loss. I was mad, but I noticed that this time, the price is higher on Binance, how ironic, now I have to buy it back from Poloneix exchange and send it back to Binance. So I bought it and sent it to Binance.
After sending it I got a pop up message that my funds will be locked up till I confirm or reject the withdrawal and this can be done through email. I was thinking it was like other crypto exchanges where within seconds an email will be sent to you for a conformation code. Unfortunately it’s not the same, this one takes up to 24 whole hours. This got me angry and anxious, why will withdrawal review take 24 hours, it takes the exchange 24 hours to review your withdrawal before it gets processed for withdrawal. I am doing arbitrage trading here, I can’t afford to have my asset locked for 24 hours besides, volatility can shorten the value of my asset or increase it, but I am not ready to take that risk.
I sent them an email and they told me to be patient. My assets were locked up till the review is confirmed for withdrawal or rejection. Mind you the value of my asset started depreciating at this point due to volatility, I had no choice but to wait for the 24 hours to get my withdrawal reviewed, unfortunately I didn’t know this before I made the transaction, I would have done it with a StableCoin. So before withdrawing any coins from Poloneix exchange, know that your withdrawal review might take up to 24 hours before it starts processing, so it’s advisable to use a StableCoin if you are worried about the volatility. But if you don’t mind the volatility, you can go ahead.
