Crypto arbitrage will probably seem like an attractive prospect — who doesn’t like the idea of buying crypto in one place and selling it for a profit somewhere else?
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.
This type of arbitrage involves a long/short trade. Here the arbitrageur buys underpriced crypto (“long”) and simultaneously sells overpriced crypto (“short”).
If you’re opting for the even more complicated triangular arbitrage, you’ll basically just need to do a more complex version of the methods by transferring between three different cryptocurrencies instead of just two.