#ArbitrageTradingStrategy
💡 Simple Arbitrage Strategy:
✅ Step 1:
Find two exchanges (or markets) where BTC (or any asset) has a price difference.
e.g. BTC = $69,800 on Exchange A
and BTC = $70,200 on Exchange B.
✅ Step 2:
Buy on Exchange A, sell on Exchange B at the same time.
Profit = (Sell Price - Buy Price) - Fees.
✅ Step 3:
Make sure to factor in:
— Trading fees
— Withdrawal fees
— Transfer time (risk of price change during transfer)
— Liquidity (can you fill enough volume?)
🔷 Types of Arbitrage:
📍 Spot Arbitrage — like above, between exchanges.
📍 Triangular Arbitrage — exploiting price differences between 3 pairs (e.g., BTC/ETH, ETH/USDT, BTC/USDT) on the same exchange.
📍 Funding Rate Arbitrage — earning by going long spot & short futures when funding rate is high.
🚀 Tips:
✨ Use bots — speed is crucial.
✨ Watch liquidity & slippage.
✨ Start small to test before scaling.
✨ Best opportunities arise during high volatility.