10 Common Crypto Arbitrage Pitfalls And How To Avoid Them
By Eli Elad Elrom on ALTCOIN MAGAZINE
At the time of writing, there are an estimated over 500 cryptocurrency exchanges out there. That volume of exchange opens the door to arbitrage trading, as the prices of the same coins are different between these exchanges and there are plenty of opportunities out there.
When it comes to trading crypto arbitrage, many traders get excited about the possibility of making a decent return absent gambling on the coin’s price movement. However, before you rush and quit your day job, you should understand the risks and learn how to try and avoid them.
Just as other investment vehicles, crypto arbitrage is not risk-free and there is much to learn and master to be able to make a good return on a consistent basis.
There are many things that can go wrong along the way. To help investors understand the risks, I have compiled a list of 10 common arbitrage pitfalls that you may encounter, as well as ways you can try and avoid these mistakes. I hope you find this useful and informative.
