Arbitrage Opportunities
Last updated
Last updated
In a crypto market deep in the red, some opportunities are arising for experienced traders. Many investors are discovering arbitrage opportunities in DeFi, a technique that trades the price disparity between ETH and a related product.
Simply put, crypto arbitrage exploits temporary inefficiencies in asset prices during short intervals when a currency is available at different prices at the same time. The currency is bought on the exchange where the price is lower and sold on exchanges where the price is higher to generate a profit.
With the advancement of smart contracts, arbitrage can be done instantaneously –– buying an asset on one exchange and selling it for lower on another, and vice versa –– making it easier than ever to turn a profit quickly. Thanks to this innovation offered as 'flash loans' by protocols like Aave, DeFi natives can find new and unique ways to make money in crypto.