Crypto Arbitrage
2 min read
•
Feb 16
Arbitrage cryptocurrency trading is an important element in securing the function of decentralized exchanges (DEXes) that use automated market making (AMM) to determine the price of crypto assets. Without crypto arbitrage traders, replenishing liquidity pools and equalizing their balance, which changes after every transaction, would be rather problematic.
Simply put, arbitrage traders buy cryptocurrency where it is cheaper and sell it where it is more expensive. The traders monitor the price of cryptocurrency trade pairs on various platforms (for example, on exchanges) and buy or sell an asset when they find that its price differs across p