What is Crypto Arbitrage?

Crypto Arbitrage is Trading method or strategy where a person buys a Cryptocurrency on one Exchange where its price is low and then sells it on another Exchange where the price is higher, making a profit from the price difference. It takes advantage of price variations between different platforms.

Imagine you see that Bitcoin is selling for $30,000 on Exchange A & $30,200 on Exchange B. You but 1 Bitcoin on Exchange A for $30,000, then sell it on Exchange B for $30,200. You’ve made a $200 profit just in minutes without much hurdles

Benefits of Crypto Arbitrage :

• Crypto Arbitrage is the most useful and easy method make profit without any lost.
• This is low-risk strategy compared to other trading methods, it does not require any efficient understanding of markets strategy and their rules.
• Unlike other trading methods you are not need to worry about the up and down of market or prediction about trade that will go up or down.

Types of Crypto Arbitrage

 There are several types of Crypto Arbitrage

Spatial Arbitrage :

It’s like buying Bitcoin on Exchange A (Based in U.S.) and selling it on Exchange B (based in Europe), where the price might be slightly different base on their market demand.

Triangular Arbitrage :

Suppose, you have noticed a price difference among three different Crypto currencies, say Bitcoin, Ethereum, and Litecoin. You exchanged Bitcoin with Ethereum, then Ethereum for Litecoin, and finally Litecoin to back Bitcoin. If it done correctly, You end up with more Bitcoin than you started with.

Intra-Exchange Arbitrage :

This Type of Arbitrage is contained within one Exchange or Platform with its different products. For Instance, a trader might take an advantage of the price  difference b/w a Cryptocurrency’s spot prices

How to start Crypto Arbitrage?

Crypto Arbitrage is taking Advantages of price difference of Cryptocurrencies on different Exchanges. Here’s a simple step-by-step explanation to start arbitrage :

Educate yourself :

• Make Sure you understands how Crypto Currency and Exchanges works. Get fimilar with difference type of arbitrage such as Spatial, Triangular or Intra- Exchange Artibrage.

Choose Exchange :

• Make choose of exchange you want to use for arbitration.
• Look its Trading , payment & withdrawal fee &  regulatory compliance of each exchange.

Setup Your Account :

• Setup your account and deposit your payment onto your account

Buy Crypto Currgency :

• Setup eye on exchanges and note the price difference of Crypto Currency on the exchange.
• Before Buying Crypto Currency verify all important things such as price difference, authentic platform.
• Now, Buy your Currency and try to sell on other exchange where its price is much higher than the previous one.

Maintain record :

• Make sure you carry all document about  taxes and fee purposes.
• Using cryptocurrency accounting software to help manage and organize your trading data.