Bitcoin Arbitrage

Bitcoin Arbitrage

Bitcoin Arbitrage is the financial act of using different platforms for buying Bitcoin cheaper and sell it in a higher price

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Carla Faraguna
Carla Faraguna edited on 3 Jun, 2019
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Arbitrage is a trading method where weone buybuys a coin from any exchange that has the lowest price of the currency in the market and selling the coin in an exchange with a much higher value. The main reason for this price difference among different exchanges is because the prices of a coin are dependent on the last trade. As there are a different number of people on different exchanges with different preferences thus the prices vary too.


For example, if the price of BTC is $4000 in exchange A and $4500 in exchange B. WeAn investor can buy 10 BTC from exchange A which gives usthem a value of $40000 total. Now wethey selling these 10 BTC on exchange B. WeAn getinvestor gets a total value of $45000. This is a profit of $45000-$40000= $5000.

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