Edited: There are some people who are upset because some of the points listed in this article are nearly identical to one of the articles their moderator discovered and claimed I was paraphrasing, there may have been some interesting facts that were taken from an article and now I've edited and removed the facts, and for the points, it may be almost identical because it really was key points of arbitrage. It's just a matter of whether or not they go into greater detail on that point.
Because I'm a newbie here and have a lot to learn, there may have been some errors in sourcing the images, for which I apologise.The fact that there's one or two paragraphs almost similar with other articles is only because I've read and learned from the specific article which I discovered it's common for articles that explaining basic or arbitrage to list the same points.All the mistakes, misunderstanding and misinterpreted about this article that this articles may bring is deeply regretted.despite all that I'm assure that im putting all my effort into writing this and not just some copy and phase.This is based my experience and some research im doing at the this article was written.For the unvoters sorry,all this credit,sourcing,and paraphrasing is still not very clear to me.please don't crush the little bit of reputation that i working hard to everyday to increase.
## The Terms
the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.
Source : [Merriam Webster](https://www.dictionary.com/browse/arbitrage)
The term "arbitrage" is used to describe the simultaneous buying and selling of securities, currency, or commodities in different markets in order to take advantage of differing prices for the same asset.
<details markdown='1'><summary><span style='color:#0040ff;'>Key Notes</span></summary>
•Arbitrage in cryptocurrencies takes advantage of the fact that cryptocurrencies can be priced differently on different exchanges.
•Arbitrage can be done on multiple exchanges or even with only one exchange.
•some of The most common risk that associated with arbitrage are Slippage, price movement, and transfer fees.
•When doing arbitrage, the liquidity amount of the chosen coin on the exchange must also be considered.
•The gaps most often don't persist long. However, if the arbitrageur correctly timed the market, the profits can be enormous.
• The sequence does not always involve only two types of currency; sometimes you have to go through multiple currencies to get better spreads and thus profit from price differences
## Between Exchanges<br><br/>
# The Method. In
## Between Exchanges
Buying a cryptocurrency on one exchange and then transferring it to another exchange to sell it at higher price.
### What to be taking into consideration
1. Transfer between exchange sometimes taking to long thus eliminating the price spreads
2. Transfer fees for some coins or exchange sometimes can be ridiculous.<div style='page-break-after:always;'></div>Arbitrageurs can avoid transaction fees by holding money on two separate exchanges. Using this strategy, a trader can simultaneously buy and sell a coin.The only fee that have to be pay is trading fee's that we know is relatively low when executing high volume trade.
[Source Image ](https://www.shutterstock.com/search/risk+profit)
## Same Exchange (Triangular)
> Triangular Arbitrage is also known as Cross Currency Arbitrage or Three-Point Arbitrage. Triangular arbitrage exploits an inefficiency or imperfection present in the market where one currency is overpriced while another is undervalued, according to the [International Monetary Fund (IMF).](https://www.imf.org/en/Home)
As the name imply,the arbitage is executed in the same exchange by exoloit the spreads between three types of coins.
In my personal opinion Triangular arbitage is basically a risk free type of arbitage with only trading fees that has to be take into consideration.
While on that, finding opportunity in triangular arbitage is sometimes requiring constant monitoring of multiple types of coins and a lot processing of data.therefor pulling of this type of operation is best done using automate trading software or tools which be some will be listed on the next section of this article.
There's still many arbitrage methods to be told,for example the Multiletaral path arbitrage,defi liquidity arbitrage.but perhaps we gonna discuss about them on the next article.
## The Tools
Arbitrage is a complex operation that is sometimes can be difficult to execute because of their requirement of constant monitoring and huge of data processing.while it can be still done by manually, there's many free and paid tools,robot or software offered to get the job done.but to find them somewhat a bit trickier.for that matter here i will listed some of them which i personally have tried many of them myself.
1. [Coingapp](https://www.coingapp.com/) - free app that monitor and finding arbitrage opportunity between exchanges.![IMG_20220425_084948.jpg](https://i.imgur.com/wH7fyM4.jpg)<br><br/>
2. [Cryptohopper](https://www.cryptohopper.com/) - Automated crypto trading bot.free with paid subscribe<br><br/>
3. [Coygo](https://coygo.app/) - Crypto trading bots, data insights, arbitrage, day trading, portfolio tracking & more.Have 1 month free trial.<br><br/>
4.[Pionex](https://www.pionex.com/offers/#/w/grid/tOgsJPHOha) - 24/7 automatic trading bot.Free.<br><br/>
5.[Empricia](https://empirica.io/strategies-catalog/triangular-arbitrage/) - Triangular arbitrage trading tool.Paid Software.<br><br/>
## The Summary
In comparison to more mature instruments such as stocks, options, and CFDs, the cryptocurrency market is extremely volatile. Higher volatility typically results in more frequent price swings, both upward and downward. As a result,the price spreads of the same coins between various exchange is likely to be occur. some professional traders find this situation as an opportunity to do an arbitrage trading and profit from it.
In general, there are numerous cloud-based solutions for cryptocurrency traders that use trading bots, though these may not be flexible enough . There are only a few automated trading platforms for cryptocurrencies that can meet the needs of more sophisticated and institutional investors created focusing in Arbitrage trading operation.
Trader with high capital is usually using this kind of trading platform to make profits.stories have shown to us numerous history of succesfull arbitrage traders.oppurtinity will always there's.its only the question of will we be there to grab ot when it show up.
Thank you for reading
*I am not financial advisor and this article isn't financial advise.trading cryptocurrency is risky due to it high volatility nature,please done yournowm research and manage risk.
<span style='color:#2068b0;'>This full article written using Redmi note 9T smarphone.</span>
Articles written by : <span style='color:#ff0000;'>Superslayer0040</span>