@humorcubbies
Arbitrage in cryptocurrency involves exploiting price differences of the same asset across different exchanges or markets. Traders buy the asset at a lower price on one platform and sell it at a higher price on another, earning a profit from the discrepancy. Since cryptocurrency markets operate 24/7 and can have varying liquidity and trading volumes across exchanges, price inefficiencies often occur. To profit from arbitrage, traders need to act quickly, as the price gap can close in seconds. While it seems like a risk-free strategy, arbitrage can be affected by transaction fees, withdrawal limits, and network congestion, which can eat into profits.
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