What is crypto arbitrage?

What Is Crypto Arbitrage?

Arbitrage is profiting from price differences of the same asset on different platforms. For example, if Bitcoin is cheaper on Exchange A and higher on Exchange B, you buy on A and sell on B (or the other way). In theory you lock in a risk-free profit. In practice, you need to account for fees, transfer time (moving crypto between exchanges), and slippage. By the time you transfer, the gap may close. Some traders use algorithms and fast execution. For retail, arbitrage opportunities are rare and small. Do not assume you can easily earn from it.