#crypto
What Is Crypto Arbitrage?
Crypto arbitrage is a trading strategy that takes advantage of price differences for the same cryptocurrency across different exchanges. Since crypto markets aren’t perfectly synchronized, Bitcoin, for example, might be priced at $29,850 on Exchange A and $30,000 on Exchange B. Arbitrage traders buy low on A and sell high on B—profiting from the gap.
There are several types:
Spatial Arbitrage: Trading between different exchanges.
Triangular Arbitrage: Taking advantage of price differences within the same exchange across three currencies.
Statistical Arbitrage: Using algorithms and bots to detect tiny gaps across multiple markets.
Although the profit per trade can be small, automated tools can execute hundreds of trades in seconds. However, it’s not without risks—network delays, withdrawal fees, and sudden price shifts can wipe out gains.
In essence, crypto arbitrage is the art of making low-risk, quick profits in an otherwise volatile market—if executed smartly.
