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Risks in Arbitrage

Risks in Arbitrage
Max
07/07/2024
Authors: Max

What are the risks associated with exchanges?

Important: Unknown exchanges can be dangerous. First, check reviews about the exchange and test with small amounts because there is always a risk of encountering scammers and losing money.

To engage in arbitrage, you need to find a leading exchange with good volume and a lagging exchange with likely smaller trading volumes and a price that lags behind the major exchange. There can be issues with the lagging exchange, such as withdrawals being closed for a couple of months or the exchange verifying only citizens of one country, which is often the case with Asian exchanges. Always check everything first through a search engine and then with small amounts. Be cautious in everything.

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