Presented by OVEX

Why cryptocurrency arbitrage is taking the industry by storm

 ·28 Apr 2021

Investors are clamouring to take advantage of cryptocurrency arbitrage as it offers great returns while reducing the risk of your crypto investment.

Arbitrage involves buying cryptocurrencies like Bitcoin on overseas exchanges, shipping them onto South African exchanges, and selling them at a profit.

This is possible because countries with exchange controls pay more for these cryptocurrencies – meaning they sell at higher prices.

If you are using the right investment platform, you can make 2%-4% profit on these trades per day without taking on any risk. The only catch is that you’re limited by South African exchange control laws as to how much you can send out each year.

For South Africans, this can be done using your foreign investment allowance of R10 million and your discretionary allowance of R1 million every year. Meaning you can make up to R400k per year in risk free income.

How OVEX helps with cryptocurrency arbitrage

While this type of investment sounds enticing, there are a few hurdles that you must overcome.

One of these is that it can be a difficult technical undertaking, as is often the case with making trades.

Additionally, there is traditionally the risk that between purchasing and receiving your cryptocurrency, its value could dip – which swallows up the arbitrage profit and potentially even causes you to incur a loss.

Fortunately, OVEX solves these problems.

It simplifies the cryptocurrency arbitrage process by providing an intuitive interface and platform where OVEX does the heavy lifting and guarantees you won’t make a loss from trading.

You can therefore make your investment in just a few clicks.

The period of uncertainty regarding your investment’s value is also removed as OVEX extends a line of credit that covers any adverse price changes.

“Our mission from the start was to take as many risks out of the arbitrage process as possible, and we have done just that,’ said OVEX founder Jon Ovadia.

“People new to arbitrage are often suspicious of any claims of risk-free profits because of the number of scams in the crypto space, but arbitrage has been around for ages and is nothing new in the investment world.”

This opportunity is just now available to the retail investor and is easier than ever to profit from.

“For example, buying a particular stock cheaply on one exchange and selling for a higher price on another.”

OVEX facilitates arbitrage trades using TUSD and has a partnership with Trust Token – an American stablecoin platform with a market cap of over $350 million.

This allows customers to buy stablecoins at their international prices without ever having to leave OVEX.

OVEX also has a Africa’s largest cryptocurrency Prime Brokerage and OTC desk which makes it easy for high-net-worth individuals to buy and sell cryptocurrency as well as conduct arbitrage trading over a secure and private channel.

These traders get access to zero-slippage trading thanks to OVEX’s extensive liquidity engine – which enables it to make much larger trades than many regular exchanges.

“We are getting a lot of interest from retail investors as well as brokers looking to make safe profits for their clients,” said Ovadia.

Have any questions? Speak to an arbitrage Expert or get started today.

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