đ° Arbitrage Trading Strategy: Profit from Price Gaps Across Markets đđ
The Arbitrage Trading Strategy is one of the smartest and most risk-controlled ways to trade. It involves buying an asset on one exchange where itâs priced lower and simultaneously selling it on another where itâs priced higher â locking in a risk-free profit (in theory). đ§ âïž
Types of arbitrage in crypto:
â Spatial arbitrage â between two different exchanges
â Triangular arbitrage â exploiting price differences between three trading pairs
â Statistical arbitrage â using algorithms to identify pricing inefficiencies
â DeFi arbitrage â leveraging DEXs, AMMs, or lending platforms
While arbitrage opportunities are often short-lived and require speed, automation, and low fees, they can be a powerful source of consistent profits, especially in volatile or inefficient markets. đ
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