Crypto Arbitrage

Exploring the so-called ‘3-way arbitrage'trading strategy on Binance crypto currencies. Is this hype or could it be profitable? Just what a concept! Make 3 trades in rapid succession when you will find favorable exchange rates and voila! Profits in seconds and no connection with volatility. How does this work? Let's break this down employing a ridiculously simple bartering scenario. Whenever we exchange one crypto-currency for another we are bartering or exchanging fungible assets. Let's image these scenario: Jane has  10 almonds Will has  pineapples  and will trade each for 5 almonds Christine has  mangoes  and will trade evenly for a pineapple Xavier has  almonds  and will trade   6 for each mango So in this arbitrage opportunity, Jane trades 10 almonds for 2 pineapples, and these for 2 mangoes which then she trades for 12 almonds. She has  profited 2 almonds  through these trades due to anomalies in the exchanges . Above is exactly the same kind of 3-way arbitrage with c