Crypto Arbitrage

Is when a trader purchases an asset in one place and sells it in another to profit from a deviation in price between markets. e.g., 1 $ETH costs $1500 on CEX but it's currently also trading at $1520 on Kraken. So, you purchase your Bitcoin on CEX and hopefully, you will be able to sell it quickly enough on Kraken to make that $20 profit.

Most crypto exchanges will have a fixed page where you can find if the wallet you need is online or not and they might also tell you when it should be back online so it is always worth checking this page before making any trades.
Cryptocurrency trading is quite difficult, and there are several risks involved, mainly due to the volatility of the crypto market. You never know when the prices may go long or short. To become a successful crypto trader, you need to analyses patterns in the price charts to predict future movement.

Finally, when you execute the crypto arbitrage, ensure that you don’t miss things and make mistake. Make sure to double-check your analysis of the buy and sell listings on the exchanges. Also, have a closer look at the trading volume.
Another factor that people don’t look for is the extra fees, which decrease the profit by a decent margin. Suppose you earn a gain of 3% or $30 on the crypto and while selling it at another exchange, you need to pay 1% trading fees. The profit is cut down to 2% or 20$.

By the time you purchase cryptocurrency and have it validated by the miners, the market may move for or against you. When you sell it at another exchange, the price may vary, so you may not receive the profit you were hoping for.

Cryptocurrency arbitrage rises due to market inefficiency and not due to the actions of an individual or group of individuals. However, as more traders engage in arbitrage, there are bound to be lesser opportunities for others as such traders immediately nullify the price difference. As you already know, arbitrage helps the market to stabilize and increases the trade volumes on various exchanges.

There are multiple arbitrage techniques and opportunities that one can benefit from, whenever there is a market inefficiency. However, as more traders indulge in arbitrage, these opportunities start to disappear as soon as they arise. This helps the market to stabilize, and the prices may end up similar across exchanges.