WHAT IS CRYPTO ARBITRAGE? || 10% beneficiary to @tron-fan-club

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Arbitrage is just like you get a job at the rate of $50 but you decide to give the job to someone else at the rate of $40. That means you will be making $10 for hardly doing any work.

WHAT IS CRYPTO ARBITRAGE?

Just like the example I gave earlier, it simply means buying at a low price and selling at a high price. You can buy a coin from an exchange platform at a lower and sell it on another exchange platform at a higher price and you will have to do this in a few minutes. What you will be looking for is a little difference in the price.

HOW DOES THIS HAPPEN?

There are very few price differences between many exchange platforms, that is because different people are trading on the different exchange platforms and that set the price. The crypto arbitrary is less risk compared to other trading strategies because you are only dealing with the currency valuation. You simply taking advantage of the current opportunity. For instance, if you have a friend or anyone that wants to sell his car for $1,000, you can find other people who want to buy that car at the rate of $1,100, you simply be making $1,100 by just being the middleman and managing the transaction.

Crypto Arbitrage can be a simple way, it is just you buying from one exchange platform and selling it to other exchange platforms. For instance, you can buy Ethereum on Binance at the rate of $20,000 and transfer that Ethereum to the FTX exchange platform and sell it at the rate of $20,010. That is just an easy profit of $10 for just a few minutes of work. You should know that this price difference won't later long, the price on both exchange platforms will be equal in a few minutes and that means that there will be no more profit to get in the market. The problem with this crypto arbitrage is the transaction fee because the transaction fee could choke the profit and sometimes the transaction could be about $20 to $25. You can use direct arbitrary to make a profit and you can also use a bot to trade and that will do the hard work for you automatically.

TRIANGULAR ARBITRAGE

It has to do with you using three coins. For instance, it could be USDT, SHIB, and ETH, you can buy SHIB with your USDT, then you can sell your SHIB for ETH and sell the ETH back to USDT. With this strategy, you will be making a profit with the little price difference between SHIB and ETH and it could be any coin. In the case of this example, the trading pair will be USDT/SHIB, SHIB/ETH, and ETH/USDT. If we trade will largely amount of money like a million dollars, the price margin will be equal because we will be buying SHIB which will be the price SHIB goes up and selling ETH which will make the price goes down.

IS IT PROFITABLE?

For sure, it is profitable and a lot of people have been using it on the foreign exchange market even though we start using it on the crypto market. You can site websites like coinmarketcap to find exchange platforms with low prices for an asset. It is the small exchange platforms that will earn you more profit than the popular exchange platform. You can also use trading bots to earn more money because it is fast and it is automatically and safe time. There are many trade bots out there that could you trade arbitrage opportunities and you can also use some trading platform to find the crypto arbitrage opportunity.