Arbitrage is the purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. In this case, you are pre-paying for Bitcoin at a price that is below the average marked price for Bitcoin and you can sell the Bitcoin at the much higher current exchange rate. Arbitrage is a technique used by millions of day traders every day. In day trading, this is normally done simultaneously; however, if the market price is on an upward trend, then you may choose to hold it for bigger profits.