Questions tagged [risky strategy]

JejuJoyfulHeartSoulMate Fri Jul 05 2024 | 5 answers 803

Could you elaborate on the potential risks associated with crypto arbitrage as a trading strategy? Many investors view it as a way to profit from price differences across various exchanges, but I'm curious about the pitfalls. Is it prone to high volatility, technical difficulties, or regulatory uncertainties? Also, how does one effectively manage the risks involved to ensure sustainable returns? Your insights would be invaluable for those considering this approach.