#ArbitrageTradingStrategy
Arbitrage is a strategy where you profit from price differences of the same crypto asset across different exchanges.
Example:
Buy BTC on Binance at $65,800
Sell BTC on Coinbase at $66,100
→ Profit: $300 (minus fees)
🧠 Types of Crypto Arbitrage
Exchange Arbitrage: Buy low on one exchange, sell high on another
Triangular Arbitrage: Trade between 3 tokens to exploit price gaps
DeFi Arbitrage: Use bots to exploit price mismatches on DEXs
Funding Rate Arbitrage: Earn from futures vs. spot rate differences
✅ Pros
Low-risk, market-neutral
Works in bull or bear markets
Can be automated
⚠️ Cons
Small profits, needs high volume
Fees and timing are critical
Can require bots or multi-exchange access
🛠 Tools
Arbitrage bots: Hummingbot, custom scripts
Trackers: CoinMarketCap, DexScreener
Bottom Line:
Great for traders with fast tools, low fees, and access to multiple markets.
➡️ DYOR .
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