#ArbitrageTradingStrategy #ArbitrageTradingStrategy 💹
Arbitrage trading is a low-risk strategy that exploits price differences of the same asset across different markets. In crypto, traders buy a coin at a lower price on one exchange and simultaneously sell it at a higher price on another, locking in profit instantly. This strategy relies on speed, liquidity, and minimal transaction fees. Common types include spatial arbitrage, triangular arbitrage, and statistical arbitrage. While profits per trade are often small, high-frequency bots and large volume can make it worthwhile. However, success depends on fast execution and monitoring price spreads closely.
#CryptoTrading #Arbitrage #DeFi #TradingTips