Hey Leos! I hope you will be fine. It is my second post in the Leofinance and I hope you all have read my first post in the Leofinance. Today I am going to talk about the Arbitrage Trading another technique to make some profit in a few moments.
What is Arbitrage Trading?
Arbitrage Trading is a profit taking technique in which we buy a crypto currency from one exchange where it's price is low and then suddenly we sell it in the other exchange where it's price is high. This is exchange Arbitrage Trading, that is used by many people.
Arbitrage Trading has its other type as well in which we buy a cryptocurrency from any exchange and then there is a person who wants to buy that cryptocurrency but he cannot buy it directly from the exchange. As he must have to buy that crypto currency so he will contact me to get that crypto currency from me. And then he will pay me more than the exchange price. And I'll also surely charge him more than the exchange and will earn profit. This is Arbitrage Trading from which anyone can get benefits.
Explanation with example
Let me explain this wonderful technique with an example so that everyone can easily understand this technique and can get benefit. I am not going deep and just taking a simple example of Hive coin as everyone is familiar to this coin. I am just taking it simple so the newcomers or #newlions learn these things and can get benefits from the Leofinance.
According to the Coinmarketcap the different prices and markets of Hive coin are given below in the picture.
From the image you can see that hive had different price in the different exchanges. So we can get benefit and make profit by buying hives from one exchange where the price is low and afterward selling where the price is high.
See at gate.io exchange hive has a real-time trading price of $0.9367 and it is low price. So I can buy from this exchange and then I can sell it in another exchange where the price is higher than this.
But you can see that in the Bithumb hive has higher price as it is trading in that exchange at the price of $0.9527 so I can sell my hives which I have bought from the gate.io and I can easily make profit within a few moments.
So it is all about the Arbitrage Trading, basically I am trying to tell about some basic techniques which are useful for the #newlions as well as for the older lions and this technique can easily be understood and everyone can apply it easily.
Disclaimer:- I have told about the Arbitrage Trading technique, but as the crypto market is volatile so i am not responsible for any risk. So take your risk on your behalf.
My other publication in Leofinance:-
Yours:- @uop a #newlion in the Leofinance.