Explanation of Smart Arbitrage on Binance "Arbitrage Bot"
Smart arbitrage on the Binance platform is to give an order to artificial intelligence to buy the currency from a platform where it is lower, and then sell it on another platform where the currency is higher.
Examples of how arbitrage works.
In short, profit comes from the small price difference between platforms.
Thus, the profit will not be noticeable or significant unless the capital is substantial.
Buying a currency on platform "A" and selling it on platform "B":
If the currency is sold at a lower price on platform "A" compared to "B", the algorithm will buy the currency on "A" and trade it on "B" to achieve profit from the price difference.
Buying a currency from platform "C" and selling it on platform "D":
If the currency is sold at a lower price on platform "C" compared to "D", the algorithm will buy the currency on "C" and trade it on "D" to achieve profit from the price difference.
Risks: Although the risk is lower compared to other transactions and contracts, the benefit may decrease or become negligible sometimes due to the rapid fluctuations of currencies that may outpace the speed of bots in buying and selling.
However, it remains one of the safest transactions.
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