June 9, 2022

Basics of crypto arbitrage. General idea

Let's say, you buy Bitcoin at $100 on one exchange and sell it at $102 on another.
In the context of one hundred dollars, you make 2% off this transaction, two dollars to be specific.

Now, if you use a bigger capital.
$10,000, for starters. And you still make 2%, which now is two hundred dollars. Earned in just minutes. But what if your capital is 50 grand, a hundred, half a stick?

In simple terms, it's just reselling.