There are a lot of cryptocurrency exchanges available in the market. Sometimes, the same tokens/coins are listed at different prices as a result of different demand and supply. Therefore, it is possible for users to arbitrage by buying at a lower price on one exchange and selling at a higher price on another exchange.
1. Find a Trading Pair
We will use XLM/ETH as an example.
2. Compare Several Exchanges
We will compare three exchanges in this example: BitMart, Okex and Binance.
As we see, 1 XLM = 000049 ETH on BitMart
1 XLM = 00047890 ETH on OKex
1 XLM = 000048300 ETH on Binance
3. Decide Arbitrage Strategy
First, make sure you compare these prices at the same time. In this example, the lowest price to buy the XLM is on Okex, and the highest price to sell XLM is on BitMart, and BitMart has 0% trading fees until April 15.
Now, after considering the transaction fees and withdraw fees in different exchanges, you can make a decision.
If you want to know the transaction fees, please read here: