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Most arbitrage opportunities are executed by trading bots, which monitor price discrepancies and act swiftly to capitalize on them. As traders may not always have the option to develop complex bots, the chances of spotting an efficient arbitrage opportunity tend to diminish over time. Occasionally, a manual trader might notice a significant price spread and take it upon themselves to act, maximizing their gains before automated systems can respond.
The Concept of Transaction Fees in Crypto Trading
The pursuit of small profit margins through numerous transactions is a common theme in cryptocurrency trading. High-frequency trading or penny trading can accumulate significant returns over time, as traders attempt to collect small fees that accumulate from various transactions.