#ArbitrageTradingStrategy
Arbitrage trading is one of the oldest and most straightforward strategies in crypto. It’s all about taking advantage of price differences for the same asset across different platforms. In simple terms, you buy low on one exchange and sell high on another — and the profit comes from that small price gap.
For example, if Bitcoin is trading at $60,000 on Binance and at $60,300 on Coinbase, I could buy BTC on Binance and immediately sell it on Coinbase. That $300 difference per coin (minus fees) is my arbitrage profit.
There are different types of arbitrage:
Spatial arbitrage: Between different exchanges (like Binance and Kraken).
Triangular arbitrage: Within one exchange using three different trading pairs (e.g., BTC/ETH → ETH/USDT → USDT/BTC).
Statistical arbitrage: Using algorithms to spot temporary price inefficiencies.
Personally, I think arbitrage can be a low-risk strategy if done right, but it needs speed, good liquidity, and very low transaction fees. Also, it works best when the market is volatile or when there are delays in price updates between platforms.
I’ve tried it a few times during high-volume events or when there’s a sudden news breakout. It’s not always huge profit, but it feels smart and efficient — especially when other strategies are too risky.
