Arbitrage is a purchase and sale of a cryptocurrency in order to profit from a difference in the price between different exchanges. The transactions must occur simultaneously or in the shortest possible timeframe to avoid exposure to market risk, or the risk that prices may change on one market before both transactions are complete. A triangular arbitrage strategy involves three instead of two trades, exchanging the initial currency for a second, the second currency for a third, and the third currency for the initial. A profitable trade is only possible if sufficient market imperfections exist.
Hedging is the practice of taking a position in one market to offset and balance against the risk adopted by assuming a position in a contrary or opposing market or investment. In the cryptocurrency world, hedging allows traders to reduce trading risk significantly while increasing profits compare to simple arbitrage. With a self-developed operating sysetmes and the fluctuations of the cryptocurrency, hedging is yield to achieve considerble profits.
Venture capital (VC) is a type of private equity,a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth. The traditional VC projects, the greater the investment, the greater the risk, the higher returns. The investment cycle is awfully long compare to the Cryto Token Distrubition (CTD). CTD is the Venture Capital in the cryptocurrency world by investing early in potential blockchain projects. It shortens the investing period by having a early exist (token exchanges) to the investors. There are many blockchain projects give massive returns to the investors recently. Successful investment records in the past will lead us to the brighter future.