LET'S TALK ABOUT ABITRAGE.

Arbitrage trading in crypto is when you buy a cryptocurrency at a low price on one exchange and sell it at a higher price on another exchange to make a profit — risking very little (if done quickly and correctly).

GOOD TO KNOW:

1. Price Differences:

Crypto prices (like Bitcoin, Ethereum, etc.) can differ slightly between exchanges because of demand, supply, and how fast people are buying/selling.

Example:

Bitcoin price on Binance = $30,000

Bitcoin price on Kraken = $30,100

A $100 difference!

2. The Arbitrage Move:

You would buy Bitcoin on Binance for $30,000 and immediately sell it on Kraken for $30,100 — making $100 profit (minus fees).

3. Types of Crypto Arbitrage:

Spatial Arbitrage: Different exchanges in different places (e.g., Binance vs. Coinbase).

Triangular Arbitrage: Inside one exchange, trading between three currencies. (Example: BTC → ETH → USDT → BTC.)

Decentralized Arbitrage: Between decentralized exchanges (DEXs), like Uniswap and SushiSwap.

4. Challenges to Watch:

Fees: Trading fees, withdrawal fees, deposit fees can eat up your profit.

Transfer time: If you transfer coins between exchanges too slow, the price can change.

KYC / Withdrawal limits: Some exchanges limit how much you can move per day.

Slippage: If the market moves while you're trading, you may not get the price you want.

5. Tools People Use:

Bots (automatic programs) that scan many exchanges for price differences and trade instantly.

Manual monitoring (but you must act very fast).