#ArbitrageTradingStrategy is a technique used in financial markets, including cryptocurrency markets, to take advantage of price differences of the same asset in different markets or platforms. The objective is to buy the asset where it is cheaper and sell it where it is more expensive, obtaining a profit from the difference.
How does Cryptocurrency Arbitrage work?
The cryptocurrency market is decentralized and fragmented, which means there is no unique and centralized price for each cryptocurrency. Each exchange operates as its own ecosystem, and differences in supply and demand, liquidity, trading volumes, and even communication issues and delays in networks can create these price disparities.