Why Do Crypto Arbitrage?

It is low-risk because it relies on already identified opportunities to generate profit. No predictive analysis is needed. Plus, trades can also be entered in seconds. The latter means risk exposure is very low.

However, traders need to pay higher fees than in predictive trading. This may eat into profits. They are also time-sensitive. They can also be affected by Anti Money Laundering checks, blockchain transaction speed/time, and offline servers. Funds can also be susceptible to a security risk by way of hacking.