What is little in your definition ? Trading actively is suggested only when you are equally capable to a professional trader but honestly there will be no matter of  your capital is huge or small, it is always safer with bitcoin if you go for long term based. I'm not sure about why you are considering arbitrage trading because it is a rare opportunity and most active traders may not bother arbitrage opportunities as it needs lot of attentions to spot out.

Overall, I understand you are having very good opinion about active trading but I'm afraid that you may not experience in real life similar to your opinion. I agree quick ROI is possible with active trading whereas long-term holding does not, still if you consider the risks involved in active trading, probably you may avoid it for ever. I guess with small capital you are planning for active trading still I'm suggesting regardless of your capital size, it is always better in all circumstance to go for long term, in my opinion too.