Doing so helps in making profits through a process that involved limited risks. The other advantage of this strategy is that one need not be a professional investor with an expensive set-up to begin arbitrage trading.

The crypto market is renowned for being highly volatile compared to other financial markets. There seems to be more hype surrounding the potential of arbitrage opportunities in the crypto scene. Crypto asset prices tend to deviate significantly over a certain time period. Since they are traded globally across hundreds of exchanges 24/7, there are far more opportunities for arbitrage traders to find profitable price discrepancies.

All that traders need to do is spot a difference in the pricing of a digital asset across two or more exchanges and make a series of transactions to take advantage of the difference.

Unlike day traders, crypto arbitrage traders do not have to predict the future prices of bitcoin and other cryptos. Nor do they enter trades that could take hours or days before profit generation. By spotting arbitrage opportunities and capitalizing on them, traders expect fixed profit without having to necessarily analyze the market or use other predictive pricing strategies. Also, depending on the resources available, traders can enter and exit an arbitrage trade in seconds or minutes.

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