Divergence trading is a crypto trading strategy that utilizes price differences or mismatches between two different crypto markets or exchanges to generate profits.

Divergence trading is a popular strategy in crypto trading due to the decentralized and fragmented nature of the crypto market which can lead to price differences or mismatches between one market or exchange and another.

In this strategy, traders will identify price differences of the same crypto asset on two different markets or exchanges. Then, they will buy in the market with the lower price and sell in the market with the higher price simultaneously or almost simultaneously. By doing so, they can lock in profits from the price difference.

Divergence trading requires close monitoring of price movements in various markets or exchanges as well as the ability to execute orders quickly and efficiently. This strategy also comes with risks, such as liquidity risk and poor execution risk.