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Why Is Triangular Arbitrage More Common in Crypto than in Traditional Finance?

Crypto markets are less efficient and more fragmented than traditional markets, creating more frequent price gaps to exploit.
Greeks.Live23.11.25

Why Is Triangular Arbitrage More Common in Crypto than in Traditional Finance?

Triangular arbitrage is more common in crypto due to the market's inherent inefficiencies and fragmentation. The crypto market operates 24/7 across hundreds of exchanges with varying levels of liquidity and demand, creating more frequent price discrepancies.

Traditional finance markets, like forex, are more mature and efficient, with high-frequency trading firms quickly eliminating such opportunities. The relative immaturity and volatility of the crypto space provide a more fertile ground for these types of arbitrage strategies.

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