The value of popular cryptocurrencies like Bitcoin and Ethereum has spiked exponentially over the past year.
Many South Africans simply purchased these cryptocurrencies, held onto them for an extended period, and then sold them when they showed a profit.
However, the founder of cryptocurrency exchange OVEX, Jon Ovadia, said there are ways to make substantially more money through cryptocurrency arbitrage.
What is cryptocurrency arbitrage?
“If you bought oranges in Polokwane for R100 and sold them in Joburg for R120, that is a simple form of arbitrage,” explains Ovadia.
“The reality is that arbitrage has been going on for centuries.”
In the context of cryptocurrency, arbitrage involves buying cryptocurrencies like Bitcoin on overseas exchanges, transferring it to a South African exchange, and selling it for a 2%-7% profit.
This is possible because countries with exchange controls – including South Africa – end up paying more for internationally-traded cryptocurrency thanks to the supply of global currencies like the US dollar and Euro being restricted.
This makes it possible to make quick and easy money, and removes a lot of the risk many investors associate with holding onto cryptocurrency as a mid-to-long-term investment.
Instant trades remove risk
One of the big risks of arbitrage trading is that if the cryptocurrency’s value falls on the market where you plan to sell it, this can result in lower profit – or even losses.
However, OVEX nullifies this risk by offering instant trades that lock in your arbitrage profits as soon as you instruct the company to make an arbitrage trade.
Have any questions? Find out more today from an OVEX arbitrage expert.
It achieves this by using the TUSD stablecoin, which guarantees risk-free trading.
“When the client buys USD from their bank to send overseas they are able to – at the exact same time – sell TUSD for a profit via the OVEX OTC (Over-The-Counter) desk, which will extend the client a credit line,” said Ovadia.
Another great way to save money through performing arbitrage trades with OVEX is the fact that you do not have to apply for a tax clearance certificate – which can cost around R2,000.
Depending on the size of your investment, this extra cost could cancel out any profit you make on the trade.
With OVEX, this is no longer a concern, as OVEX offers qualifying customers free tax services through it’s network of qualified tax practitioners.
OVEX trades around R4 billion per month on its OTC desk and thousands of its clients make up to R250,000 per year or more on the platform through cryptocurrency arbitrage.
If you would like to learn more about this great opportunity, click here to request a call back from an OVEX arbitrage specialist.