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Let's start with a brief explanation:
What is crypto arbitrage?
In simple terms, crypto arbitrage is a strategy to take advantage of the price difference of a crypto coin on two different exchanges. We buy the coin on an exchange that offers a lower price and sell it on another exchange at a higher price. The principle is similar to buying an item at a store for a cheaper price and reselling it at another store for a higher price.
📈 Example: Let's say we buy $ETH for $5000 on exchange "1" and then sell the same $ETH on exchange "2" for $5500. The profit we get is $500. This sounds simple, but it requires fast execution and the ability to move funds between exchanges quickly.