Cryptocurrencies like Bitcoin trade on hundreds of different exchanges, and sometimes, the price of a coin or token may differ on one exchange versus another. That’s where the classic Wall Street strategy of “arbitrage” comes in. “Capturing the arb” means taking advantage of the fact that an asset is selling for cheap in one place and at a higher price in another market.
With crypto arbitrage therefore, investors seize upon the opportunity that a digital currency is trading at a lower price on one exchange by buying and selling it almost immediately for a higher price on another exchange. Here’s a closer look at how crypto arbitrage works and trading strategies that use the tactic.
03-May-2022
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