Technical Definition
Arbitrage
Profiting from price differences of the same asset across different exchanges or markets.
By Crypto University Editorial
SlippageLiquidityAlgo-Trading
✦ Key Insight
Risk-free(ish) profit opportunity in inefficient crypto markets; bots dominate it now.
✕ Common Misconceptions
Ignoring transfer/withdrawal fees and time; missing that opportunities close in seconds.
Detailed Explanation
How It Works:
Buy low on one exchange, instantly sell high on another; requires fast execution, low fees, and accounts on multiple platforms.
FAQs
Is arbitrage still profitable? Yes for pros with bots and capital; retail traders rarely beat fees/speed.
Best for beginners? Triangular arbitrage (within one exchange) or simple CEX-to-CEX spots.
In Practice
“BTC at $60,000 on Exchange A and $60,100 on Exchange B — buy on A, sell on B for $100 instant profit (minus fees).”
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