CRYPTOCURRENCY ARBITRAGE TRADING
Arbitrage is the age old trade of profiting from the discrepancies between exchanges. As markets became more and more efficient, arbitrage opportunities were few and far between, until the advent of Cryptocurrencies.
Bitcoin was the first cryptocurrency invented in 2008, marking the start of a new unregulated market with many arbitrage opportunities, due to its volatility and inefficiencies.
Combined with the use of Crypto Arbitrage Trading bots, opportunities are much easier to come by, leading to a risk free and almost instant trade.
SPATIAL ARBITRAGE EXAMPLE
Spatial Arbitrage is the simplest form of arbitrage, where an asset is bought at one exchange and sold at a higher price to another exchange, generating profit from the discrepancy.
BUY
AT EXCHANGE 1
AT $1000
SELL
AT EXCHANGE 2
AT $1100
TRIANGULAR ARBITRAGE EXAMPLE
An example of Triangular Arbitrage is where one currency is converted to another, and then converted to another currency, and finally back to the original currency.
