Arbitrage
DeFi
Profit from price gaps across markets or pools.
Arbitrage is the act of buying an asset where it is cheaper and selling it where it is more expensive. This activity helps keep markets aligned and can reduce user slippage. In crypto, searchers often automate these trades and compete in block building. If you want to try it, start with clear rules, track costs, and monitor your fail rate closely.
Frequently asked questions
Why does arbitrage exist?
Prices move at different speeds across venues. Arbitrageurs buy where it is cheap and sell where it is expensive, which pushes prices back in line.Do I need a flash loan?
Not always. Small gaps can be captured with your own capital. Flash loans help when the size needed is large and the window is short.What are the main risks?
Fees, slippage, and failed transactions. Latency matters. Test with small sizes and measure gas and success rates before scaling.