#ArbitrageTradingStrategy Cryptocurrency arbitrage is a strategy that involves buying cryptocurrency at a lower price on one exchange (or market) and selling it at a higher price on another, profiting from the difference in prices.
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📈 Types of arbitrage on Binance
1. Inter-exchange arbitrage
Buying a coin on Binance and selling it on another exchange (for example, Kraken or Coinbase) where the price is higher.
Example:
BTC costs $58,000 on Binance, but $58,200 on Kraken.
Buy on Binance, transfer BTC to Kraken — sell for a profit.
2. Intra-exchange arbitrage
Using the price differences between different trading pairs on Binance itself.
Example (triangular arbitrage):
BTC/USDT → ETH/BTC → ETH/USDT
You buy BTC with USDT, then ETH with BTC, and sell ETH back for USDT — profiting from the exchange rates.
3. Statistical arbitrage
Using algorithms or bots to detect minor price discrepancies in assets and execute trades quickly.$BTC