Trading & Technical Analysis

How does crypto arbitrage work across exchanges?

Crypto arbitrage across exchanges is the practice of buying an asset where it trades cheaper and selling it where it trades higher, profiting from the price gap. Because the same coin can quote slightly differently on two venues, a trader buys on the lower-priced exchange and sells on the higher-priced one. For example, buying at 100 on one platform and selling at 100.5 on another nets 0.5 before costs. In practice fees, transfer times, and fast-moving prices often erode or erase the gap, so arbitrage carries real execution risk and is rarely the easy edge it appears to be.

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