Explanation of Smart Arbitrage on Binance "Arbitrage Bot"
Smart arbitrage on the Binance platform means instructing artificial intelligence to buy a currency from one platform where its price is lower, then sell it on another platform where the price is higher.
Examples of how arbitrage works.
In short, profit comes from the small price difference between platforms.
Therefore, the profit will not be noticeable or significant unless the capital is substantial.
Buying a currency on platform "A" and selling it on platform "B":
If the currency is sold at a lower price on platform "A" compared to "B", the algorithm will buy the currency on "A" and trade it on "B" to achieve profit from the price difference.
Buying a currency from platform "C" and selling it on platform "D":
If the currency is sold at a lower price on platform "C" compared to "D", the algorithm will buy the currency on "C" and trade it on "D" to achieve profit from the price difference.
Risks: Although the risk is lower compared to other transactions and contracts, the benefit can sometimes diminish or become non-existent due to the speed of currency fluctuations that may outpace the speed of bots in buying and selling.
However, it remains one of the more secure transactions.