Exchange Monitor Tutorial: Don’t Execute Blind
Most arbitrage failures are operational: withdrawals disabled, deposit networks mismatched, confirmation requirements changed, or hidden limits. This tutorial is your pre-trade monitoring workflow.
In this guide
5 topics- 1What to check before you enter
- 2Deposits/withdrawals status and network availability
- 3Limits, fees, and confirmations
- 4Alert setup and time-stop rules
- 5A copy/paste checklist
1) The pre-trade monitoring mindset
Assume a route is broken until you verify it. Scanners show price, not operational status. Your job is to validate the route in <60 seconds before you size up.
- •Never rely on old deposit addresses or last week’s network settings
- •Treat maintenance and limits as part of your PnL model
- •Prefer repeatable routes over “rare spikes”
2) Deposits/withdrawals: verify both ends
A route requires (a) withdrawals enabled on the source exchange and (b) deposits enabled on the destination exchange for the same token + network.
- •Check destination deposit network list for the asset
- •Check source withdrawal availability + network list
- •If either side is disabled, the spread is irrelevant
3) Confirmations, minimums, and memos/tags
Even when deposits are enabled, the route can fail on details: high confirmations, minimum deposits, or required memo/tag.
- •Confirmations can change; check the deposit page every time
- •Minimum deposit below threshold may not credit
- •If memo/tag exists, treat it as mandatory
4) Limits: KYC tiers and daily caps
A profitable route is useless if your account cannot withdraw/transfer the needed size today.
- •Know your withdrawal tier limits
- •Watch for per-asset caps and risk controls
- •Keep multiple funded venues as a fallback
5) Fee drift: taker fees, withdrawal fees, and sudden changes
Fees can drift quietly. Monitor (a) trading fees and (b) withdrawal fees for your route. A spread can look positive while net becomes negative.
- •Model fees for both legs (entry + exit)
- •Re-check withdrawal fee for the selected network
- •If fee jumps, stop and re-calc
6) Alerts + time-stop rules (execution discipline)
Professional execution uses rules, not hope. Define a time-stop and set alerts when operational status changes.
- •Time-stop: if deposit not credited by X minutes, cancel the plan
- •Set alerts for: withdrawal disabled, deposit disabled, network congestion spikes
- •Keep a backup exit venue (or hedge plan)
Exchange monitor checklist (copy/paste)
- •Source: withdrawals enabled for asset + network
- •Destination: deposits enabled for same asset + network
- •Deposit memo/tag checked (if present)
- •Confirmations + minimum deposit checked
- •Account limits (tier/caps) checked for today
- •Withdrawal fee checked for selected network
- •Time-stop defined (max wait time)
- •Backup route planned (alt network/venue/hedge)
Useful links
Next
Use the Spot Scanner to find a spread, then run this monitoring checklist before you execute.