Today I tested an arbitrage strategy between different pairs and exchanges involving BTC and USDT. While on Binance the BTC/USDT pair was trading close to $111,500, I noticed that on another smaller exchange the price was about $150 lower. I seized the opportunity and executed the arbitrage by buying BTC on the cheaper exchange and selling it on Binance. This operation required speed, available capital on both exchanges, and low fees to offset the profit.
It is a strategy that requires constant attention to the market and the use of price monitoring tools. Arbitrage can be a good way to generate more stable profits with less exposure to volatility, but execution time and liquidity are critical points. #ArbitrageTradingStrategy