Are Arbitrage Opportunities More Common in Emerging or Established Cryptocurrency Markets?

Arbitrage opportunities are generally more common and larger in emerging cryptocurrency markets compared to established ones. This is because emerging markets are often less efficient, with fewer professional traders, lower liquidity, and greater price discrepancies between different exchanges.

As a market matures and attracts more sophisticated participants and institutional capital, these inefficiencies tend to be arbitraged away more quickly. Therefore, while the potential profits may be higher in emerging markets, the risks, such as counterparty risk and liquidity risk, are also significantly greater.