Arbitrage is an old method of making profits from price discrepancies across different marketplaces, and this technique has been brought to the crypto market.
Any major cryptocurrency, such as Bitcoin (BTC) or Ether (ETH), can be traded on multiple crypto exchanges, and its price slightly differs from platform to platform, opening the door to arbitrage opportunities.
Traders can buy crypto on one exchange and immediately sell it for a higher price on another exchange, making a profit without exposing themselves to volatility risks.
Since price discrepancies are usually very small, arbitrage trading is suitable for experienced traders with hefty deposits.