How Do Arbitrageurs Exploit Price Discrepancies in the Cryptocurrency Market?

Crypto arbitrageurs buy a cryptocurrency on one exchange where the price is lower and simultaneously sell it on another exchange where the price is higher. This is often inter-exchange or triangular arbitrage.

They rely on speed and automated trading systems to execute the trades before the price difference vanishes. Volatility and fragmented markets in crypto create these opportunities.

Transaction fees and withdrawal times must be factored in.