What is arbitrage and how does it work in crypto? | Headlines | News | CoinMarketCap
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Crypto arbitrage refers to taking advantage of price differences for the same digital asset on different exchanges or markets. Traders buy a …
Crypto arbitrage refers to taking advantage of price differences for the same digital asset on different exchanges or markets. Traders buy a cryptocurrency at a lower price on one platform and sell it at a higher price on another to profit from the price discrepancy.
Arbitrage can play a vital role in the cryptocurrency industry, as it enhances market efficiency by aligning prices across different exchanges.
How does arbitrage in crypto work?
Arbitrage traders will usually start by monitoring various platforms to spot when a cryptocurrency is priced lower on one exchange than another. They then buy the asset at the lower price and quickly transfer it to the exchange where the price is higher to sell it for a profit.
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