The crypto market in 2026 remains volatile, and many people mistakenly believe that stablecoin arbitrage can reliably earn risk-free profits. In reality, I’ve stepped into many pitfalls before realizing— the core of arbitrage is not chasing the highest spread, but ensuring that every cent of profit can truly be realized. Low risk sounds safe, but it’s actually equivalent to high danger; a tiny oversight can wipe out all previous efforts.

Sudden platform rule changes, collateral liquidations, wallet security threats… these are not hypothetical but real stories that have happened. I’ve learned from these lessons and developed a comprehensive risk control system covering the entire process from pre-trade, during trade, to post-trade. Even beginners can adopt this system directly to reduce the chances of making mistakes.

**The Pre-Trade Phase Tests Patience Most**

Before taking action, you must lay a solid foundation. First, verify the authenticity of the platform—only trust official websites and official announcement channels. Fake platforms are everywhere, and rushing into them only makes you a victim. When choosing collateral, prioritize stablecoins; lower volatility means significantly reduced liquidation risk.

Funding allocation should follow a strategic approach: no more than 50% of your total assets should be used for arbitrage, with the remaining 30%-40% reserved for unexpected market situations. This may seem conservative, but in extreme market volatility, it can be a lifesaver. Many people, lacking this safety net, are forced to cut losses and sell at a loss—regretting it too late.

**Risks Are Most Concentrated During Operation**

The real test begins at entry. My daily routine is to check the collateral ratio every day, with a warning threshold set at 170%. Once approaching this level, I immediately add collateral or repay part of the loan. Although this high-frequency monitoring seems troublesome, compared to the losses from liquidation, it’s a worthwhile investment.

Ensure your connection is ultra-secure—use only your own secure network environment. Enabling two-factor authentication on your wallet is a basic step. Never interact with unfamiliar DApps, and don’t click on unverified links. When transferring funds, do it in stages: first test with small amounts to confirm the process is correct, then transfer larger sums. Also, avoid executing large transactions during periods of extreme market volatility—this is common sense for self-protection.

**Post-Trade Management Should Not Be Lazy**

As the arbitrage cycle nears its end, plan the subsequent use of funds in advance. If assets suddenly plummet or your wallet shows abnormal activity, activate emergency plans immediately—don’t rely on luck. Spend some time weekly reviewing your trades, recording risk points encountered, and gradually optimizing your entire system.

Platform rules and policies are constantly evolving; regularly checking for these changes is crucial. Diversify your funds and adjust your strategies promptly based on market conditions to truly safeguard the profits you’ve worked hard to earn.

**Ultimately, It’s a Mindset Issue**

This kind of arbitrage is less about how much you earn and more about how much you can keep. Paying close attention to every risk control step allows you to profit steadily amid market fluctuations. Not crashing is actually the greatest victory. This is not only the wisdom of arbitrage but also a philosophy for surviving in this market.