#ArbitrageTradingStrategy #ArbitrageTradingStrategy

Arbitrage trading is a strategy that leverages price differences of the same asset across different markets or exchanges. For example, if Bitcoin is priced at $30,000 on Exchange A and $30,050 on Exchange B, a trader can buy on A and sell on B, making a risk-free profit. However, this strategy requires speed, automation, and low transaction fees. Latency, withdrawal limits, and price slippage are major challenges. Personally, I’ve experimented with simple triangular arbitrage within a single exchange, and even that requires careful monitoring and execution. Although the margins are small, when done at scale or with bots, arbitrage can become a consistent and low-risk method of generating returns.