What is Arbitrage?
Arbitrage is a trading strategy that involves exploiting price differences between two or more markets. In the context of cryptocurrency, arbitrage refers to the practice of buying a cryptocurrency on one exchange and selling it on another exchange at a higher price.
- Take advantage of price discrepancies across exchanges
- Earn profits through automated trading
How Does Arbitrage Work in Crypto?
Arbitrage in cryptocurrency works by identifying price differences between exchanges. Traders use automation software to monitor prices across multiple exchanges and execute trades instantly, maximizing profits.