Bitcoin’s Crashing? That Won’t Stop Arbitrage Traders From Raking in Millions
WALL STREET JOURNAL
One of the oldest tactics on Wall Street is going viral in the world of digital currencies.
The strategy, called arbitrage, is simple: If something trades at different prices in multiple places, buy it where it is cheap and sell where it is dear. Traders call that “capturing the arb.”
It is tough to find arbitrages in regulated securities markets these days, but not in the world of cryptocurrencies, where bitcoin trades on more than 100 exchanges around the globe and hundreds of other currencies trade in venues few people have heard of.