✅ Master Arbitrage Strategies
Understand cross-exchange, triangular, and flash loan arbitrage
Your Progress
0 / 5 completed🎯 Key Takeaways
You've learned about crypto arbitrage strategies from basic cross-exchange trading to advanced flash loans and MEV. Let's review the key concepts.
🔄
Arbitrage Types
Cross-Exchange
Buy low on one exchange, sell high on another. Requires capital on multiple platforms.
Triangular
Trade three pairs in a loop on one exchange. Faster but smaller margins.
Flash Loan
Borrow massive amounts with no collateral, repay in same transaction.
⚠️
Risk Management
•Fees: Trading, withdrawal, and gas fees can consume 0.3-1% of your capital
•Slippage: Large orders move prices against you, reducing profits
•Speed: Milliseconds matter - human execution is too slow
•Capital: Need $5,000-50,000+ to generate meaningful profits
🛠️
Tools Needed
•API Access: Real-time price feeds from 10+ exchanges
•Trading Bots: Automated execution in milliseconds
•Smart Contracts: For flash loans and MEV strategies
•Infrastructure: Low-latency servers near exchange data centers
🔮
Future of Arbitrage
•Competition: More bots mean smaller margins and faster execution requirements
•MEV Dominance: Sophisticated strategies like sandwich attacks growing
•Cross-Chain: New opportunities across L2s and different blockchains
•Regulation: Increased scrutiny on MEV and front-running practices
📝 Knowledge Check Quiz
Test your understanding of crypto arbitrage. You need 3/5 correct answers to pass.
1
What defines simple cross-exchange arbitrage?
2
Why is triangular arbitrage generally faster than cross-exchange arbitrage?
3
What is the critical requirement for flash loan arbitrage?
4
What is the main risk of cross-exchange arbitrage?
5