Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. arbitrage is purchasing an asset in a market where the price is lower and simultaneously selling the asset in a market where the asset’s price is higher.
How to become a crypto arbitrage trader quick guide
_you must have a crypto wallet.
_ $100 or more
Find arbitrage opportunities
_Manually monitor cryptocurrency price on different exchange.
_ Use a crypto arbitrage scanner website or app to spot opportunity.
Executing the trade
_ Deposit fiat currency into the exchange with lower crypto price.
_Buy the crypto currency at a lower price.
_ Transfer the crypto to the exchange with higher price.
_sell the crypto at the higher price.
_ withdraw you fiat currency from the higher price exchange.
Risk
_ Be mindful of rapid price changes.
_ watch out for exchange fees that can reduce profit.
_ consider liquidity risk that could make selling at a higher price challenging