In the cryptocurrency market, besides the traditional approach of buy low and sell high, are there other ways to make money? The answer is yes. If you're interested in trading but worried about the difficulty of market prediction, crypto asset arbitrage trading might be the direction you're looking for. This strategy doesn't require you to judge price trends; you only need to seize market price differences.
The core essence of arbitrage trading
The basic principle of arbitrage trading is simple: the price of the same digital asset varies across different markets, and you can profit by buying at a low price in one market and selling at a high price in another. These price differences usually stem from variations among market participants, differing liquidity, geographic trading enthusiasm, and other factors.
Unlike traditional trading that requires technical analysis, fundamental analysis, or market sentiment judgment, arbitrage trading's key is quick identification and execution. Since digital asset prices fluctuate every second, arbitrage opportunities often last only a few seconds to a few minutes.