Arbitrage Exchange Trading and Effective Strategies

Crypto trading has long been making some traders hefty sums of profits. However, trading cryptocurrency comes with its fair share of risks. The past year started off with a bang and every crypto asset witnessed new all-time highs. Unfortunately, 2018 ended with a whimper after the crypto market was dominated by the bears year around and the digital currencies fell back to their lowest in 18 months. Even Bitcoin following one of its biggest bull rallies to $19,500, dropped down by 80 per cent by the year-end. 2018 was a testimony to the fact that digital currency can swing wildly and nobody can know the market for certain. This is where the concept of arbitrage trading comes in. If you are an investor or perhaps a digital currency enthusiast, the term arbitrage exchange may sound familiar. The concept holds many a trader's fixation since it is one of the best ways to make money trading Bitcoin quickly and with minimum risk. Arbitrage Exchange in a Nutshell Arbitrage exchange is a popular trading strategy wherein you exploit the difference in the price of the same asset on different exchanges. The approach allows pro-traders to make profits from discrepancies between exchange rates. Looking at the Bitcoin arbitrage trading, it involves buying and selling Bitcoin simultaneously to make a profit from the difference in price on different exchanges. For instance, suppose Bitcoin is listed for $9000 on exchange A, while exchange B has a Bitcoin price of $9150. You can buy Bitcoin on the cheaper exchange and simultaneously sell it on the more expensive exchange to make a profit.