You have definitely heard this word in recent months. Today we gonna decipher the meaning of this term and explain the reasons of its popularity.
Generally speaking arbitrage — is the simultaneous buying and selling of assets on different markets in one period of time in order to make profit.
For example, in crypto one coin price may differ on various exchange platforms. Traders buy coins for the lower price on one platform and sell dearer on another one. Thus such bundles allow them to gain profit from every deal.
Arbitrage is connected with fiat currencies (dollar, euro etc.) as well, especially in terms of current rates volatility. But most often for international transfers you will need cryptocurrency.
In the next posts we will look deeper through other arbitrage terms. Visit our office if you want to learn more about crypto.