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?  

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? 

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?

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

The principle of crypto arbitrage is one thing; putting it into practice is quite another.

Spatial Arbitrage

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.  

Convergence Arbitrage

This type of arbitrage involves a long/short trade. Here the arbitrageur buys underpriced crypto (“long”) and simultaneously sells overpriced crypto (“short”).

Triangular Arbitrage

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.

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