What is bitcoin arbitrage?

Bitcoin arbitrage is an investment strategy in which investors buy bitcoins on one exchange and then quickly sell them at another exchange for a profit. Because bitcoins trade at different prices on different exchanges, it’s an opportunity that many investors have seized in recent years. Arbitrage is not unique to Bitcoin investing.

What is Bitcoin (BTC)?

Cryptocurrencies or virtual currencies, which are commonly used as a new kind of money, are also utilized by a lot of crypto enthusiasts for trading and investment. With over 5,000 cryptocurrencies available in the market today, bitcoin (BTC) remains at the top in terms of market capitalization and price.

What are the best coins for crypto arbitrage?

XLM, XRP and NANO are a few of the coins that work best for this type of arbitrage trade. A more sophisticated approach to crypto arbitrage is to hold cryptocurrencies on two different exchanges. Whenever there is a price discrepancy, the arbitrage trader can buy crypto on one exchange and sell it on another at the same time.

What is an arbitrage trader?

Savvy traders, known as arbitrage traders, know how to take advantage of these small price discrepancies, and they can turn a potential profit from buying and selling the same asset on different markets. In traditional finance, arbitrage opportunities exist for securities, commodities and currencies traded on different global markets.