Crypto arbitrage is simple in theory: buy a cryptocurrency on one crypto exchange where the price is low, then quickly sell it on another exchange where the price is higher. The difference is your profit.
Does It Actually Work? Crypto arbitrage does work, but not for everyone.
Successful arbitrage traders usually have:
- Significant starting capital
- Advanced trading software
- Lower transaction fees through VIP status
- Fast withdrawal limits
I've made some successful arbitrage trades, but I've also lost money when prices shifted during the process or when withdrawal fees ate my profits.
Crypto arbitrage isn't a guaranteed money-maker. It's become more competitive as the market has matured, and the easy profits of earlier years are mostly gone.
If you're considering trying it, start small. Watch how prices move between exchanges for a while before risking your money. And remember, understanding what is liquidity in crypto is essential since low liquidity markets can trap you in positions when you need to exit quickly.
