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An arbitrage crypto bot is a type of customized software created to take advantage of differences in price between the same cryptocurrency on various exchanges. In order to make money, it automatically purchases the asset at a cheaper price on one exchange and sells it at a higher one on another. The bot utilizes trading algorithms and real-time data to efficiently take advantage of these price differences, operating at a high frequency and speed. In doing so, traders are able to optimize profits while reducing physical labor and response time.
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