#ArbitrageTradingStrategy

📌 What is Crypto Arbitrage?

Arbitrage means you profit from price differences for the same asset on different exchanges or markets — buying low in one place, selling high in another, almost instantly.

Goal: Capture small, low-risk profits repeatedly by exploiting inefficiencies.

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🧩 How Does Crypto Arbitrage Work?

Example:

BTC price on Binance: $60,000

BTC price on Kraken: $60,150

You buy 1 BTC on Binance, sell 1 BTC on Kraken → instant $150 profit (minus fees).

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⚡ Types of Crypto Arbitrage

1️⃣ Simple Exchange Arbitrage

Buy on Exchange A where it’s cheaper, sell on Exchange B where it’s more expensive.

Works best with major coins (BTC, ETH) because they have enough liquidity.

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2️⃣ Triangular Arbitrage

Exploit price differences between 3 pairs on the same exchange.

3️⃣ Decentralized Arbitrage

Arbitrage between DEXs (like Uniswap, SushiSwap) and CEXs (like Binance).

DeFi creates opportunities because DEX prices often lag behind CEXs.

4️⃣ Cross-border Arbitrage

Price differences between exchanges in different countries (e.g., ‘Kimchi Premium’ in South Korea).

✅ Tools You’ll Need

🔍 Fast market data & arbitrage scanner tools:

Bitsgap, Coinarbitrage, or custom bots.

🔗 Accounts on multiple exchanges — with enough funds pre-deposited.

⚡ Fast execution — speed is everything.

💰 Low fees — fees can eat the profit, so use exchanges with low withdrawal/trading fees.

🏆 Advantages

✅ Usually lower risk than trend or day trading — relies on price mismatch, not market direction.

✅ Works in any market condition — bull, bear, sideways.

✅ Often automated with bots.

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⚠️ Risks

❌ Fees & withdrawal limits — can wipe out your profit.

❌ Execution time — delays kill arbitrage.

❌ Slippage — prices may change before you complete all trades.

❌ Regulatory risks — cross-border arbitrage might break local rules.