Arbitrage trading strategies capitalize on unreasonable price differences of assets in the market (price differences of the same asset across different markets, times, or forms) by buying low and selling high, earning risk-free or low-risk returns, suitable for conservative investors who prefer stable returns. Below are common arbitrage methods and key points in the cryptocurrency market:

Common Arbitrage Types

• Cross-platform arbitrage:

There are price differences for the same cryptocurrency on different exchanges (for example, BTC quoted at $100,000 on Exchange A and $102,000 on Exchange B). Buy on the lower-priced platform and sell on the higher-priced platform to profit from the price difference.

◦ Key: Consider transaction fees, withdrawal processing time (to avoid the price difference disappearing), and platform liquidity (whether trades can be executed quickly).

◦ Suitable for: Major cryptocurrencies (BTC, ETH, etc.), as smaller cryptocurrencies have poor liquidity, unstable price differences, and may have withdrawal limits.