#ArbitrageTradingStrategy ArbitrageTradingStrategy What is the Arbitrage Trading Strategy?

Explanation of features and risks with examples

Simply put, it means buying a cryptocurrency from a platform where the price is lower and immediately selling it on another platform where the price is higher — thus achieving an instant profit from the price difference.

Simple example:

BTC price on platform A = $112,000

BTC price on platform B = $113,200

If you buy from A and sell in B, you achieve a theoretical profit of $1,200 on each Bitcoin — without significant market risk (if the trade is executed quickly).

Advantages of this strategy:

Almost instant profits. Does not rely on technical analysis or predictions.

And suitable for high liquidity markets.

Disadvantages and risks:

1. Transfer and withdrawal fees may wipe out profits.

2. Execution speed is very important – the market changes quickly.

3. Regulatory restrictions – some platforms do not allow for quick money transfers.

4. Slippage when executing large orders.

How to get started?

Open accounts on multiple platforms (like Binance, OKX, KuCoin).

Use price comparison tools or dedicated arbitrage bots.

Make sure to account for all costs (withdrawal, transfer, trading fees).

Start with small amounts to test the strategy.

In summary:

The Arbitrage strategy is not new, but it is effective when executed intelligently and quickly. In the cryptocurrency market, where prices vary from platform to platform within fractions of a second, it remains a unique tool for profit sharing with friends.