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Arbitrage
Arbitrage in cryptocurrency involves taking advantage of price discrepancies for the same asset across different exchanges. Traders buy an asset on one exchange where the price is lower and sell it on another exchange where the price is higher, profiting from the difference. Arbitrage opportunities are common due to the volatility and global nature of crypto markets. For successful arbitrage, traders must act quickly and account for transaction fees and speed, as prices can rapidly converge.
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