Why do traders need to pay attention to arbitrage mechanisms?
In the cryptocurrency market, our common way of making money is to buy low and sell high—buy at a low price and sell at a high price for profit. But is this really the only path? The answer is no. The crypto trading market is far more complex than imagined, with dozens of ways to profit. When you feel confused about various trading concepts and overwhelmed by risk management strategies, there is one method that is particularly worth paying attention to—arbitrage trading.
This low-risk strategy model has even caused many professional traders to change their ways of making money.
What is the essence of arbitrage trading?
Arbitrage trading refers to a strategy where traders profit from price differences between different markets, exchanges, or trading pairs.
The reason why cryptocurrency prices vary is primarily due to fluctuations in supply and demand. These price differences create opportunities for smart traders—offering zero-risk or near-zero-risk returns.