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Crypto arbitrage is a trading strategy that takes advantage of the differences in cryptocurrency prices across different exchanges. The principle is similar to buying an item at a store for a cheaper price and reselling it at another store for a higher price.
đĄ Hereâs how it works:
1ď¸âŁIdentify Price Differences: Look for cryptocurrencies that have different prices on different exchanges.
2ď¸âŁBuy Low, Sell High: Buy the cryptocurrency on the exchange with the lowest price and sell it on the exchange with the highest price.
3ď¸âŁMake a Profit: The difference in price after deducting commissions is your profit.
đIs it profitable?
Crypto arbitrage can be profitable, but it requires speed, market knowledge, and a bit of luck. The competition is also very fierce.