Arbitrage on Binance means profiting from temporary crypto price differences by buying low and selling high, often within seconds.
Types:
* Inter-exchange: Buy on Binance, sell on another exchange.
* Intra-exchange/Triangular: Trade multiple pairs within Binance (e.g., BTC/USDT \rightarrow BTC/ETH \rightarrow ETH/USDT).
* P2P Arbitrage: Exploit price differences on Binance P2P using various payment methods.
Benefits: Market-neutral, works in volatility.
Risks: Fees, speed (bots dominate), and execution delays. Automation is key.
💡 Pro Tips:
Use real-time arbitrage scanners or trading bots (e.g., Coinigy, Bitsgap, Hummingbot)
Monitor network congestion & exchange withdrawal times
Practice with small amounts first
Always factor in maker/taker fees, gas costs, and transfer delays.