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Cryptocurrency arbitrage is a trading strategy that leverages price discrepancies between identical crypto assets on different markets or different cryptocurrency pairs in the same market in order to generate relatively low-risk profits.
The concept of arbitrage, or taking advantage of market inefficiencies, is neither new nor exclusive to cryptocurrencies. Arbitrage has been around for decades, and it’s been a popular trading strategy used in finance ever since the first stock, bond, commodity, and forex markets appeared.
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