What is Arbitrage

Arbitrage trading is the legal act of benefitting from differences in asset purchase and sell prices. Traders generally take advantage of market disparities by purchasing an asset on one exchange and selling it on another. Exchanges price assets in various ways and may have differing liquidity levels. This variation produces market inefficiencies, and the same currencies become accessible at various prices, allowing for arbitrage trading. In the crypto world, there are numerous sorts of arbitrage. These include buying and selling assets on multiple exchanges at the same time, employing cryptocurrency pairings for triangle arbitrage, and using decentralized exchanges.

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