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Low-Risk Arbitrage Trade

What is Arbitrage Trading?

Arbitrage trading is a strategy where traders buy an asset on one exchange at a lower price and sell it on another exchange at a higher price, making a profit from the price difference.

Types of Arbitrage (Low-Risk)

Inter-Exchange Arbitrage

Buying low on one exchange and selling high on another

  • Crypto prices can vary between exchanges due to differences in supply, demand, and liquidity.
  • Traders buy an asset on an exchange where the price is lower and sell it on another exchange where the price is higher.
  • Profit comes from the price difference, minus fees and transfer time.

Intra-Exchange Arbitrage (Triangle Arbitrage)

Profiting from price differences between trading pairs on the same exchange

  • Traders take advantage of price imbalances between three different trading pairs within the same exchange.
  • No need to transfer funds between exchanges—everything happens within one platform.
  • The goal is to start and end with the same asset but with more value.

How to Set Up Arbitrage Trading on CryptoHero

Head to the Exchanges section and add the platforms you plan to use for arbitrage trading.
Generate API keys from each exchange and securely paste them into CryptoHero to complete the connection.

Go to your dashboard and click on “Create New Bot”.
You’ll be presented with the option to choose between Inter-Exchange and Intra-Exchange Arbitrage strategies. Simply pick the one that suits your trading goals.

Select your trading pair, choose between Long, Short, or Long/Short strategies, set your fund allocation and minimum profit. For best results, use a 5-minute frequency (available to Professional users) to capture more real-time arbitrage opportunities.

Backtest and optimize your inter-exchange strategies using historical data to refine your approach and trade with confidence. While intra-exchange bots focus on real-time opportunities without backtesting, they’re designed to capture fast-moving arbitrage gains, giving you an edge in the market.

Activate your bot with a click and watch it work for you around the clock. Easily monitor performance in real time and make adjustments anytime to keep your trading on track.