Crypto Active operations involve several possibilities, in addition to trading, you can arbitrage, understand how it works.

Arbitrage is a trading strategy in which an asset is acquired in one market and immediately sold in another market at a higher price, with the aim of making a profit on the difference in price.

The advantage is that cryptocurrencies are priced differently at different brokers. The key is to carry out these transactions quickly, due to currency fluctuations, which can happen to change prices quickly. This is because cryptocurrencies are priced according to supply and demand. Each broker has its book of orders with buy and sell orders at different prices.

Arbitrage between brokers You can buy a cryptocurrency at one broker and then transfer it to another broker where the cryptocurrency is sold at a higher price. But generally, “spreads” (price differences) only exist for a matter of seconds and the transfer between brokers can take a few minutes. You also need to consider transfer fees from one broker to another.

Triangular arbitration This type of arbitrage involves trading three different cryptocurrencies and making a profit on the difference in value between them at the same broker. In this case, everything happens at the same broker, with no transfer fees.

Statistical arbitrage Statistical arbitrage involves using quantitative data models to trade cryptocurrencies. A statistical arbitrage bot can trade hundreds of different cryptocurrencies at once, carefully calculating the odds of a trade's success based on a mathematical model.

Regarding the risks involved in arbitrage trading, the most common is market movement. Fluctuations can happen very quickly, causing the price of an asset to plummet in seconds. A trader normally has a small trading margin and cannot exit the operation at that moment, he needs to wait for the market to return to avoid losing money.

Another risk would be to neglect the fees involved in trading at each broker.

With refined technique and adopting measures that minimize these risks, a trader can take advantage of arbitrage opportunities several times a day.