Cryptocurrency arbitrage refers to the practice of taking advantage of the price differences of cryptocurrencies between different exchanges. It involves buying a cryptocurrency on one exchange at a lower price and selling it on another exchange at a higher price, profiting from the price discrepancy.
Full definition
To
perform cryptocurrency arbitrage, you need to find an opportunity where you can buy a cryptocurrency for less than you can sell it on another exchange (minus the fees and commission).
Calling itself a «
cryptocurrency arbitrage fund», Bitcoins Reserve hopes to buy low on one exchange and sell high on another, using automated trading software that it has developed itself.
As Bitcoin continues its wild ride, a Singapore hedge fund unit is raising $ 10 million for
a cryptocurrency arbitrage fund to trade off price movements.