Cryptocurrency arbitrage is a strategy for earning on the price difference of the same asset across different exchanges or markets. Simply put, you buy cryptocurrency cheaper on one platform and sell it for a higher price on another. This approach is considered relatively low-risk if done quickly and wisely.
As of May 1, 2025, Bitcoin is trading around $97,151.39, and despite the maturity of the market, arbitrage remains a relevant earning opportunity.
🔁 Example of an arbitrage deal
Suppose Bitcoin costs $97,151.39 on Binance and $97,500 on KuCoin. By buying 1 BTC on Binance and simultaneously selling it on KuCoin, you can earn around $348 in profit (minus fees and transfer costs).
🧠 Types of arbitrage
1. Inter-exchange - buying on one exchange and selling on another.
2. Triangular - trades between three currencies on one platform.
3. P2P arbitrage - working with different prices on P2P platforms.
4. Cross-chain - arbitrage between different blockchains (e.g., ETH on Ethereum and ETH on BNB Chain).
⚙️ Tools and platforms
Exchanges: Binance, KuCoin, OKX, Kraken
Bots: 3Commas, Bitsgap, Cryptohopper
Monitoring: ArbitrageScanner - shows price differences in real time.
⚠️ Risks
Delay in fund transfer
Fees can 'eat' into profits
Market volatility
Possible account restrictions
✅ Tips for getting started
Start small
Consider fees
Use automated solutions
Monitor liquidity and withdrawal speed