How to Use Bybit Arbitrage Trading Bot: A Comprehensive Guide 1. What is a Bybit Arbitrage Trading Bot and How Does It Work? A Bybit arbitrage trading bot is an automated tool designed to exploit price differences of cryptocurrencies across different markets or trading pairs on the Bybit exchange. The bot scans for discrepancies in prices (e.g., between spot and futures markets or across trading pairs) and executes trades to profit from these inefficiencies. It operates 24/7, leveraging APIs to place orders swiftly and capitalize on fleeting arbitrage opportunities. 2. How to Set Up a Bybit Arbitrage Trading Bot in 2025? To set up a Bybit arbitrage bot in 2025, follow these steps:1. Choose a Bot: Select a reputable arbitrage bot compatible with Bybit (e.g., 3Commas, Bitsgap, or a custom script).2. Connect to Bybit API: Generate API keys in your Bybit account (with trading permissions) and link them to the bot securely.3. Configure Strategy: Define parameters like trade size, target spreads, and risk management rules (e.g., stop-loss).4. Test & Deploy: Run the bot in a demo mode first, then activate live trading with small funds to monitor performance. 3. What is Triangular Arbitrage in Crypto, and Can It Be Used on Bybit? Triangular arbitrage involves exploiting price differences between three cryptocurrencies (e.g., BTC/USDT → ETH/BTC → ETH/USDT) to lock in profits. On Bybit, this requires:- Liquidity: High liquidity across all three trading pairs.- Low Fees: Transaction costs must not erase profits.- Speed: The bot must execute trades within milliseconds to succeed. While possible, Bybit’s fees and market depth may limit opportunities compared to larger exchanges like Binance.