Arbitrage

Arbitrage is a trading strategy that involves buying a cryptocurrency at a lower price on one market and selling it at a higher price on another. Price differences can occur due to varying liquidity, demand, or market inefficiencies across exchanges. Arbitrage traders aim to profit from these discrepancies while helping align prices between markets. This activity often relies on fast execution and low transaction costs. In crypto, arbitrage can take place across centralized and decentralized platforms.