What is crypto arbitrage?

Crypto arbitrage is a method of trading which seeks to exploit price discrepancies in cryptocurrency. To explain, let’s consider arbitrage in the traditional sense. Arbitrage is a trading strategy in which a trader buys and sells the same asset in different markets, profiting from their differences in price.

What is arbitrage trading?

Arbitrage trading is the process of buying an asset for a lower price on one cryptocurrency exchange and immediately selling it for a higher price on a different exchange. The difference between the higher and lower buy-in price is your profit. The concept of arbitrage has been around for many years in traditional markets.

How can investors track cryptocurrencies for arbitrage opportunities?

There are a number of apps investors can download that will track the prices of Bitcoin and other cryptocurrencies for arbitrage opportunities. This way, investors can take advantage of algorithms that automatically scan for arbitrage across different crypto exchanges.

What is automated crypto trading?

Automated crypto trading, sometimes called automated cryptocurrency trading, is the practice of using computer programs (crypto trading bots) to buy and sell digital currencies on one’s behalf. These software applications are intended to react to market changes to trade at the optimum moment.