How to do crypto arbitrage?

Another form of crypto arbitrage is triangular arbitrage. This strategy differs from regular arbitrage as it focuses on price differences between three currencies within the same exchange.

In triangular arbitrage, traders capitalize on the exchange rate discrepancies among three different cryptocurrencies. They execute a series of trades, usually involving buying one currency with another, and then selling the resulting currency for the third, in order to profit from the price imbalances.

Cryptocurrency arbitrage can be executed in three distinct manners. One of them is regular arbitrage, a strategy that involves purchasing and selling the same digital assets across various exchanges where there are significant price disparities.

BTCC, a UK-based cryptocurrency exchange, offers a range of services that cater to the needs of arbitrage traders. These include spot trading, which allows for the immediate purchase and sale of digital assets, as well as futures trading, which enables traders to speculate on the future prices of cryptocurrencies.

This approach leverages the inconsistencies in pricing to generate profits. Traders identify exchanges where a particular cryptocurrency is trading at a lower price and simultaneously purchase it, while selling the same asset on an exchange where it is priced higher.