Skip to main content

Posts

Showing posts with the label cryptocurrency exchanges exist as of the writing of this article. The market is full of crypto buyers and sellers

Why crypto arbitrage is NOT a sure win strategy

  Nearly 1,000 cryptocurrency exchanges exist as of the writing of this article. The market is full of crypto buyers and sellers, which can be a great opportunity to make use of crypto arbitrage trading. How do you define arbitrage trading and what should be your consideration when implementing this strategy? Short term crypto arbitrage trading Arbitrage is the practice of purchasing an asset in one location and selling it in another. This allows traders to make a profit from price differences between markets. E.g. 1 $BTC can be purchased for $16,000 on Binance, but is also currently available at $16,020 on Kraken .  So, you buy your Bitcoin on Binance. And hopefully you'll be able to quickly sell it on Kraken for $20. Many traders are thrilled about the chance to make a few dollars from discrepancies in exchanges. However, before you decide to quit your job and cash in on the opportunity, read this article. Crypto arbitrage, like all money-making vehicles, has risks. Th