✨🍕What is arbitrage trading in the crypto world?
When the same cryptocurrency has different prices on different exchanges, buy low and sell high to instantly profit from the price difference.
For example: a certain coin sells for ￥1 on Binance and ￥1.2 on OKX, with a price difference of ￥0.2.
Operation:
1⃣ Buy 1 on Binance.
2⃣ Simultaneously transfer to OKX to sell.
3⃣ Net profit of ￥0.2 (after deducting fees).
Risk Warning:
❌ Fees can eat into profits: Gas fees, withdrawal fees, and trading fees can turn small price differences into losses.
❌ Price fluctuations: The price difference may disappear during the arbitrage process (especially with small coins).
❌ Exchange account bans: Frequent arbitrage may be deemed "abnormal trading."
It is now very difficult for ordinary people to make money from manual arbitrage; it is mostly professionals using high-frequency bots. Don't follow the trend easily!
