Arbitrage is a trading strategy that involves exploiting price differences of an asset in different markets to make a profit with minimal risk. In the context of cryptocurrencies, arbitrage traders capitalize on price variations across various exchanges to buy low and sell high, taking advantage of inefficiencies in the market.

This practice involves swift transactions to benefit from temporary price divergences before the market corrects itself. Cryptocurrency arbitrage requires quick decision-making, access to multiple exchanges, and efficient fund transfers to execute profitable trades. While arbitrage can yield profits, it also carries risks such as exchange fees, transaction delays, and market volatility, requiring traders to be vigilant and well-informed to succeed in this trading strategy.

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