Bearing these in mind, we form of cross-exchange arbitrage trading. There are several ways crypto must execute high volumes of. This is most likely because Bob has to worry about is the trading fee.
Offline exchange servers: It is not uncommon for crypto exchanges to experience outages go offline. However, this does not necessarily mean that crypto arbitrageurs are completely free from risks. Note that the price also tends to vary because investor demand for an asset is slightly different on each exchange. In circumstances where a trader changes the ratio significantly in a pool executes a large trade , it can create big differences in the prices of the assets in the pool compared to their market value the average price reflected across all other exchanges. Therefore, arbitrageurs should stick to blockchains with high transaction speed; or those that are not susceptible to network congestion.
