Cryptocurrency Arbitrage – what is it?

Cryptocurrency arbitrage is the process of comparing the prices of cryptocurrency assets with the aim of profiting from the price differences between exchanges.

There are two types of cryptocurrency arbitrage:

Intra-exchange arbitrage: Involves buying cryptocurrency at a lower price and selling it at a higher price within the same exchange. It works on a simple principle: buy low, sell high, and the difference is your profit.
Inter-exchange arbitrage: In this case, you don't need to wait for the price of the coin to increase after purchase. The same cryptocurrency can be traded on multiple exchanges, and its price can vary significantly from one exchange to another. Inter-exchange arbitrage involves comparing the prices of cryptocurrencies across different exchanges and buying it where it's cheapest and selling it where it's most expensive. The difference in prices, after accounting for transfer fees, becomes your profit.