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Arbitrage

Cryptocurrency arbitrage refers to the practice of taking advantage of price contrast for the same asset on different crypto exchanges or markets.

Crypto prices can vary significantly between exchanges due to factors such as market demand, trading volume, and regional differences in regulation. These price differentials give traders the opportunity to buy low on one exchange and sell high on another to take advantage of the price differential.

Arbitrage opportunities related to cryptocurrencies can arise not only due to the volatility and inefficiency of cryptocurrency exchanges, but also due to the decentralized and often fragmented nature of the market.