#ArbitrageTradingStrategy Arbitrage Trading or Arbitrage Strategy is a trading method that relies on taking advantage of price differences for the same asset on different platforms or markets to achieve a nearly risk-free profit.
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✅ Basic Idea:
If the price of Bitcoin on Binance is $60,000, and at the same moment on Kraken it is $60,200, you can buy it from Binance and sell it on Kraken to achieve an immediate profit of $200$ per Bitcoin.
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⚙️ Types of Arbitrage:
1. Simple Arbitrage:
Buying the asset from the cheaper platform and selling it on the more expensive one.
2. Triangular Arbitrage:
Exploiting price differences between three currencies within the same platform (for example: BTC → ETH → USDT → BTC).
3. Temporal Arbitrage:
Exploiting the delay in price updates between two platforms.
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🛠️ What You Need:
Accounts on multiple platforms (Binance, KuCoin, Bybit...).
Sufficient capital for quick transactions.
Tools or bots to track price differences.
Low transfer and withdrawal fees.
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🟢 Advantages:
Relatively low risk.
Fixed profits when executed correctly.
Does not rely on technical analysis or market direction.
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🔴 Disadvantages:
Arbitrage opportunities are rare and fleeting.
Fees can eat into profits.
Delays in transfers between platforms can result in losses.
Sometimes requires bots or automated tools.