Types of Arbitrage of Crypto Arbitrage Story

TIM THOMAS TIM THOMAS Learn more

Simply put, crypto arbitrage means buying cryptocurrency on one exchange and selling it for a higher price on another exchange, allowing you to make a profit.

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Did you know that there are a few different types of cryptocurrency arbitrage, all of which work a little differently? Yes, that’s right — just as you thought you knew it all, we’re throwing you a curveball.

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Spatial arbitrage:This type of arbitrage involves purchasing crypto from one exchange and immediately selling it on another for more money.

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Convergence arbitrage:Here, a coin bought on one exchange is sold short on another exchange. The goal is to see both prices converge, and which is when arbitrageur closes both positions.

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Triangular arbitrage:This is the most complicated strategy and involves trading across more than one trading pair.

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