💹 Arbitrage Strategy
Profit from Price Differences Across Exchanges
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⚙️ How It Works
When the same crypto asset (like $XRP or $BTC ) is being traded at slightly different prices on two different exchanges, arbitrage allows you to profit by:
• Buying the asset on the cheaper exchange (e.g., Binance at $0.497)
• Selling it immediately on the higher-priced exchange (e.g., OKX at $0.505)
• Profiting from the spread, after deducting any fees
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🧠 Types of Arbitrage
1. Simple Arbitrage:
Exploit direct price differences between two exchanges.
2. Triangular Arbitrage:
Profit from discrepancies between three trading pairs within the same exchange (e.g., BTC/USDT → ETH/BTC → ETH/USDT).
3. Statistical / Bot Arbitrage:
Automated systems or bots rapidly scan for and execute profitable trades.
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✅ Advantages:
• Low-risk compared to most trading strategies
• Quick, repeatable profits
• Ideal in high-volume, volatile markets
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⚠️ Risks to Consider:
• Transfer delays may cause you to miss the opportunity
• Withdrawal and trading fees can eat into profits
• Requires speed and reliable API integration between exchanges
• Market efficiency is increasing, making manual arbitrage rarer
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🛠️ Helpful Tools:
• Price tracking platforms: CoinMarketCap, CoinGecko
• Open-source bots like Hummingbot
• Accounts with Binance, OKX, KuCoin, Bybit, etc., ready to execute trades
