Arbitrage crypto trading is a trading strategy that utilizes the price difference of the same Bitcoin or altcoin on multiple crypto exchanges to make a profit. The arbitrage strategy involves buying Bitcoin or altcoins from an exchange at a low price, then immediately selling them on another exchange at a higher price. Price differences can occur due to market inefficiencies or fragmented liquidity.

Arbitrage traders generally use specialized trading bots and trade within seconds to capture arbitrage opportunities while avoiding market risk. This activity helps balance crypto prices on various exchanges.