#ArbitrageTradingStrategy 🔁 #ArbitrageTradingStrategy – a comprehensive arbitrage strategy that allows you to take advantage of price differences between exchanges or crypto markets.
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⚙️ 1. What is arbitrage?
It is the purchase of an asset at a lower price on one exchange and simultaneously selling it at a higher price on another, yielding an immediate profit (without waiting for the price to rise).
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📊 2. Types of arbitrage in crypto
Arbitrage Type Description Example
Inter-exchange Price differences for BTC/USDT between Binance and Kraken BTC costs 70,000 $ on Binance and 70,300 $ on Kraken
Triangular Differences in exchange rates on the same exchange USDT → ETH → BTC → USDT
Geographical Prices vary due to the market (e.g., Korea, Nigeria) Korea Premium – BTC more expensive on Upbit
DeFi arbitrage Price differences on DEXs Token cheaper on Uniswap than on Sushiswap
Funding arbitrage Utilizing positive/negative funding rates on futures Profit from long vs short position
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📈 3. Example of simple arbitrage between exchanges
1. Observe the difference:
BTC on Binance = $70,000
BTC on KuCoin = $70,600
2. Action:
Buy BTC for USDT on Binance
Transfer BTC to KuCoin
Sell BTC for USDT on KuCoin
Profit: 600 $ – fees
3. Risks:
Transfer time (can change the rate)
Transaction and withdrawal fees
KYC, limits, freeze
