Crypto Arbitrage: Everything You Need to Know to Profit
Ready to take your cryptocurrency investing to the next level and take advantage of the constant price movements?
What Is Crypto Arbitrage?
Simply put, crypto arbitrage means buying cryptocurrency on one exchange and selling it for a higher price on another exchange, allowing you to make a profit.
Why is Arbitrage Possible?
Try seeing it this way: Economics textbooks refer to arbitrage as a way to make markets efficient. The argument goes that when markets are inefficient, people will engage in arbitrage until prices finally regulate themselves and become uniform.
How to Arbitrage Cryptocurrency
There are three main types of arbitrage: spatial arbitrage, convergence arbitrage, and triangular arbitrage. There are some similarities between the methods, but each one works a little differently, so we’ll go through them one by one.
If you opt for spatial arbitrage, you’ll buy crypto on one exchange, transfer it to another exchange, then sell it on the other exchange. Alternatively, you could avoid having to transfer your crypto by simultaneously making the purchases on both exchanges.
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