Arbitrage Trading: Profit from Price Gaps
Arbitrage trading is a strategy where I take advantage of price differences between exchanges or pairs. In crypto, this happens often due to volatility and lack of price uniformity.
🔍 My Arbitrage Approach:
🔸 Spot Arbitrage
Buy on Exchange A (lower price), sell on Exchange B (higher price)
Example: BTC is $65,000 on Binance and $65,300 on KuCoin
After fees, the price gap = pure profit
🔸 Triangular Arbitrage
Trade between 3 pairs in the same exchange
Example: USDT → BTC → ETH → USDT
If the loop ends with more than it started, that’s a gain
🔸 Requirements & Tools
Fast execution & low fees
Use bots, price trackers, or real-time alerts
Be aware of withdrawal limits & transfer time
⚠️ Caution: Arbitrage windows are small — timing is everything!
