💹 #ArbitrageTradingStrategy - How to trade with the Arbitrage Trading Strategy: "Profits from price differences"

Did you know?

Just one asset - two exchanges - and one small price difference opportunity → you can earn profits with almost no risk.

That is the Arbitrage Trading Strategy - a trading strategy based on buying cheap and selling high across markets.

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🧭 Basic trading steps:

Step 1 - Find arbitrage opportunities:

Monitor the price of the same cryptocurrency (e.g., BTC, ETH) on two different exchanges.

→ Example: BTC on exchange A = $59,800 | exchange B = $60,100

→ Price difference = $300

Step 2 - Execute the order:

• Buy BTC on exchange A

• Simultaneously sell BTC on exchange B

→ Profit = price difference - transaction fees

Step 3 - Rebalance capital:

After the transaction, you need to transfer coins or stablecoins between exchanges to prepare for the next trade.

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🔁 Common types of Arbitrage trades:

1. Between two exchanges (Simple Arbitrage)

2. Triangle on one exchange (Triangular Arbitrage):

Example: BTC → ETH → USDT → BTC (taking advantage of price discrepancies between pairs)

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⚠️ Important notes:

• Carefully calculate transaction fees, withdrawal/deposit fees, and processing times

• Opportunities often exist for only a few seconds → speed is a vital factor

• It is advisable to use bots or tools for automatic price difference tracking

• Ensure sufficient capital is available on multiple exchanges for quick response

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✅ Conclusion:

Arbitrage is not a "get rich quick scheme," but it is a stable, low-risk strategy that is very suitable for disciplined traders who know how to optimize technology.