Hello everyone! In today’s 100-day challenge of the crypto circle, we are going to talk about arbitrage and term arbitrage, which are two common and effective trading strategies in the cryptocurrency market. The core of arbitrage is to profit from price differences, while term arbitrage focuses on price differences over different time periods, providing investors with diverse operational space. So, how do these two strategies work? What are the risks and opportunities? Let’s dive in today!
Price difference trading opportunities between locations 🌍
Imagine you find a product cheaper in City A, but you can sell it at a higher price in City B, so you transport the product back and forth to profit from the price difference. The principle of arbitrage is that simple, utilizing price differences between different exchanges or markets to achieve stable returns.