# Simple Guide to Cryptocurrency Arbitrage

By [shamefulFalcon5](https://paragraph.com/@shamefulfalcon5) · 2022-04-04

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2021 is seeing several free and paid crypto arbitrage tools start to come online. Almost everyone seduces cryptocurrency traders with promises of guaranteed profits when buying and selling digital assets. The only question is, how does arbitrage trading work?Simple Arbitrage

As the name implies, this is the easiest form of сryptocurrency arbitrage and one of the most common. You buy a particular cryptocurrency, such as Bitcoin, on one exchange at a low price and you sell the same cryptocurrency for a higher price on a different exchange.

There are many reasons why you might want to try crypto arbitrage, including:

When comparing small exchanges and large exchanges, most arbitrage opportunities can be found, because the difference in activity means that the price of small exchanges will not change from second to second.For example, we will use Binance and bnax exchanges:

Step 1 — we buy 1 btc at a price of $48,469 USDT on the Binance.com exchangeStep 2 — we transfer btc to bnax.com exchangeStep 3 — we sell 1 btc at a price (Market order) of $51,057 USDT on the bnax.com exchangeOur profit is $2,588 After all these steps, we transfer our USDT to the Binance exchange or any platform / wallet

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*Originally published on [shamefulFalcon5](https://paragraph.com/@shamefulfalcon5/simple-guide-to-cryptocurrency-arbitrage)*