#ArbitrageTradingStrategy | Win with differences, not with guesses. 🔄📊

The arbitrage strategy is based on taking advantage of the price difference of the same asset between two or more markets.

In crypto, this tactic has gained prominence due to the fragmentation and speed of the market.

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🧠 How does it work?

1. Buy cheap on one exchange (e.g., Binance, KuCoin)

2. Sell for a higher price on another (e.g., Coinbase, OKX)

3. The difference – minus fees – is your profit

Example:

$BTC is priced at $64,200 on Exchange A

But it's worth $64,500 on Exchange B

→ You can generate $300 per unit (minus fees)

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🔍 Types of arbitrage

Between exchanges (the classic): spot vs spot

Triangular: between three pairs within the same exchange

Between derivatives and spot: arbitrage between the futures price and the spot market price

Geographical: taking advantage of regional price differences

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✅ Advantages

Low risk if executed quickly

Does not depend on the market direction

High frequency: ideal for bots or automated scripts

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⚠️ Challenges

Fees can eat into profits

Transfer times between exchanges (and volatility risk)

KYC and different limits on each platform

Requires capital and speed (ideally APIs or bots)