#ArbitrageTradingStrategy Cryptocurrency arbitrage takes advantage of the fact that cryptocurrency prices can vary slightly across different platforms. These differences arise from factors such as varied liquidity, regional demand, and trading volume.
When a trader identifies a significant price difference between platforms, they can purchase cryptocurrency on the platform where the price is lower and simultaneously transfer it to the platform where the price is higher. This process must be executed quickly to ensure that the price difference does not disappear before the transaction is finalized.