Currency and exchange arbitrage
Currency and exchange arbitrage
Cryptocurrency exchanges are simply online platforms that allow you to make accounts, and login to buy, sell, and trade cryptocurrencies. But, the price of a currency in one exchange might be different to that in another, and the prices of all the currencies are also always changing.
By tracking these numbers you can make a profit: You might buy low on one exchange and sell high on another. You could also buy one cryptocurrency and then invest into another that has a lower dollar per coin value.
This way you’d own more coins overall with the hope of the higher number of coins making you a profit compared to if you had stayed with the other coins, and owned less of them.