HitBTC customer support team frequently receives questions concerning trading concepts and strategies. HitBTC public relations team decided to clarify most questionable topics and today we start with an introduction into arbitrage deals in cryptoeconomy.
A definition of Arbitrage
In basic terms, arbitrage is the practice of buying something at one price, then selling it most often immediately afterwards at a higher price via an alternative market. Arbitrage itself comes in many forms, but in all cases the concept remains the same – financial gain through this difference in price. Arbitrage is an essential part of capitalism and occurs throughout the world economy, being a necessary component of a wide variety of commercial transactions. In a supply chain, for instance, goods are produced at one price then sold elsewhere for a higher price.