#ArbitrageTradingStrategy Arbitrage exploits price differences for the same asset across markets. In crypto, common types include:
1. **Exchange Arbitrage** – Buying low on one exchange, selling high on another.
2. **Triangular Arbitrage** – Profiting from discrepancies between three currency pairs on one platform.
3. **Statistical Arbitrage** – Using algorithms to identify mispricings based on historical trends.
Key steps:
- Monitor real-time prices across platforms.
- Factor in fees, withdrawal times, and slippage.
- Execute trades swiftly before markets correct.
Risks include network delays, liquidity issues, and sudden price shifts. Automated bots enhance efficiency, but regulatory and operational risks remain. Arbitrage is low-risk if managed properly.