How do traders exploit price differences across blockchains?

[kevin1]

A: Cross-chain arbitrage leverages discrepancies between the same asset on different chains (ETH on Ethereum vs. Polygon or Avalanche). Key steps:

Liquidity monitoring: Identify pools where token prices diverge beyond fees.

Bridges and swaps: Move assets across chains using low-latency bridges.

Automated execution: Smart bots can capture arbitrage opportunities within seconds.

This strategy is highly technical but can be profitable in volatile markets when transaction costs and bridge fees are accounted for.

#CrossChain #Arbitrage #CryptoTrading

[Abdul Khan]

Cross-chain arbitrage takes advantage of price inefficiencies — but timing and gas costs are key challenges.

[Nahid Hossen]

Smart traders use bots to bridge assets quickly and lock profits before markets rebalance.