Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies. -Investopedia
Although it is being said that arbitrage is a risk free equity but there are still some components to be reconsider before doing arbitrage: Taxations and Fees. Everyone can be rich easily if there is no such a thing. But here鈥檚 the thing, the price difference may seems profitable but only if all the tax fees is being put in the calculation. The higher the fees, the harder for investors profiting from arbitrage. They have to cope with larger or right amount of the asset to make sure the benefits are larger than costs.
We can see many arbitrage opportunities in the crypto markets. For example Bitcoin is being traded at the price of $11, 283 at Coinbase and $11, 353 at Bittrex. We can see the price difference between these two markets. Without considering all those transaction fees, we can make $70. But wait making money is not that easy. Here鈥檚 the reason:
