The arbitrage strategy in trading is one of the oldest and theoretically safest in the financial world. It consists of taking advantage of price inefficiencies between different markets or platforms to buy an asset at a lower price and sell it at a higher one almost simultaneously. In the crypto environment, for example, differences can be found between Binance, Kraken, KuCoin, or decentralized exchanges (DEX). Although it sounds simple and risk-free, in practice, it involves challenges such as fees, execution speed, liquidity, and slippage risk. Additionally, many bots and institutional traders already operate with algorithms that take advantage of these gaps in milliseconds, reducing their effectiveness for retail traders. There is also triangular arbitrage, which involves three currency pairs within the same exchange. In short, it is a very interesting strategy, but it requires automation, sufficient capital, and solid technical knowledge to achieve consistent profits in an increasingly competitive environment.
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