#ArbitrageTradingStrategy
Arbitrage Trading Strategy
Arbitrage trading takes advantage of price differences of the same asset across different markets or exchanges. Here’s how it works:
✅ Spot Price Gaps: Compare prices of the same cryptocurrency on different exchanges (e.g., BTC price on Binance vs. another exchange).
✅ Buy Low, Sell High: Purchase the asset where it’s cheaper and sell where it’s priced higher.
✅ Use Automated Tools: Speed is key! Arbitrage bots or APIs can help execute trades instantly.
✅ Consider Fees & Timing: Account for transaction fees, withdrawal limits, and transfer time to ensure profit.
✅ Risk Management: Market volatility can erase price gaps quickly—act fast!
🔥 Pro Tip: Look into Triangular Arbitrage within a single exchange for faster and safer opportunities.