The simplest form buys on the cheaper venue and sells on the dearer one at the same moment, capturing the difference. In crypto these gaps open regularly because each exchange runs its own independent order book, and regional venues can hold a persistent premium or discount driven by local demand and capital controls.
The gaps are usually smaller than they look. Trading fees on both sides, withdrawal costs, transfer time and the risk of the price moving mid-transfer all eat into the spread, and capital has to be pre-positioned on both venues to avoid waiting for a blockchain confirmation. What remains after those costs is the real opportunity, and it is why visible spreads persist rather than being closed instantly.
Why do price gaps between exchanges not close immediately?
Closing them costs money and time — fees, withdrawal limits, transfer confirmations and capital sitting idle on both venues. A gap persists until it is wider than the cost of capturing it.
Last updated October 17, 2026