Some Notes on Arbitrage
Arbitrage opportunities exist due to market inefficiencies. Boiled down, market inefficiencies are price differences for a specific asset between different marketplaces. We use our arbitrage bots to sniff out these opportunities and act on them.
Looking at this in the crypto world, this can be shown as buying a cryptocurrency in exchange A, and selling it for a higher price at exchange B. By using this technique, a trader(you) can profit from price differences among exchanges. And the good news is, in the cryptocurrency world these market inefficiencies have been quite large at certain times.