In cryptocurrency trading, we usually think of buying low and selling high to make a profit. But is this really the only way to profit? Of course not. If you want to enter the crypto trading space but are overwhelmed by various complex trading concepts and risk management strategies, then crypto arbitrage might be the strategy you need to focus on.
The core logic of arbitrage trading
Crypto arbitrage is a trading method that profits from price differences of the same asset across different markets. Due to varying supply and demand, the price of the same crypto asset often differs across exchanges. These price fluctuations provide traders with opportunities to profit with relatively low risk.
Unlike traditional trading, arbitrage trading does not require mastery of fundamental analysis, technical analysis, or market sentiment analysis. All you need to do is spot arbitrage opportunities and execute quickly. Since crypto asset prices fluctuate every second, you must react swiftly to close the price gap before it disappears.