What is crypto arbitrage bot?

A crypto arbitrage bot is an automated software program designed to exploit price discrepancies in cryptocurrency markets by simultaneously buying and selling digital assets across multiple exchanges. The main goal of these bots is to generate profit from the differences in prices, which may arise due to market inefficiencies, varying transaction fees, or differences in demand and supply across exchanges. Crypto arbitrage bots can track and trade across multiple cryptocurrency exchanges, taking advantage of the varying prices for the same digital asset on different platforms.

Arbitrage bots can be programmed to follow different arbitrage strategies, such as spatial arbitrage (trading the same asset across different exchanges) or triangular arbitrage (trading three or more different cryptocurrencies within a single exchange) or latency arbitrage.