Trading & Technical Analysis

What is arbitrage in crypto trading?

Arbitrage in crypto trading is the practice of profiting from price differences for the same asset across different markets by buying where it is cheaper and selling where it is dearer. It relies on the same token trading at slightly different prices on separate venues for a brief window before the gap closes. For example, if a coin trades at 100 on one market and 101 on another, an arbitrageur buys low and sells high to capture the spread. In practice, fees, transfer times, and execution speed often erode or eliminate the gap, and the activity carries its own operational and price risk.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.