#ArbitrageTradingStrategy Arbitrage in cryptocurrencies is a trading strategy that seeks to obtain profits by taking advantage of price differences of the same asset between different markets or platforms.

How does it work?

You buy a cryptocurrency on an exchange where its price is lower.

You sell it on another exchange where its price is higher.

The difference between both prices is your potential profit.

Types of crypto arbitrage

Arbitrage between exchanges, the most common, using different platforms.

Triangular arbitrage, involves three cryptos (e.g. BTC ➡️ ETH ➡️ USDT ➡️ BTC) to take advantage of exchange rate differences.

Decentralized arbitrage, between decentralized exchanges DEX and centralized exchanges CEX, taking advantage of how they calculate prices.

Spatial arbitrage, based on regional price differences.

Arbitrage with bots, automates the strategy to react faster to fleeting opportunities.

Image taken from the web.