How Cryptocurrency Trading Arbitrage Opportunities Arise

Real-time pricing at any cryptocurrency exchange is the price of the most bid-ask orders matched orders on that exchange. These bid-ask prices are different for each exchange due to differences in investor demand on these exchanges. These exchanges rely on centralized order books.

Automated market-making systems are different from decentralized crypto exchanges. Instead of centralized order books, the exchanges rely on a liquidity pool. Each pair has its liquidity pool.