Arbitrage has been a part of investment strategies for years, but cryptocurrency is taking this to the next level.
South African investors are now making millions of rand from cryptocurrency arbitrage through OVEX, and the trend shows no signs of slowing down.
According to OVEX founder Jon Ovadia, arbitrage is a much simpler concept than many may think.
“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.”
Cryptocurrency arbitrage involves the purchasing of a coin – such as Bitcoin – on a market, and selling it on an exchange where it costs more – thereby exploiting the different pricing in these markets.
These differences appear because countries with exchange controls – like South Africa – end up paying more to acquire cryptocurrencies than those countries which do not.
OVEX enables you to make money by helping you purchase cryptocurrency on global markets, and then sell it on South African exchanges to make a quick profit.
Key to the success of OVEX’s arbitrage product is the fact that it can offer its customers instant trading.
This means you don’t have to worry about the price of the cryptocurrency changing between the purchase internationally and the sale locally.
These changes would ordinarily introduce risk as a reduction in the value of the cryptocurrency would result in a lower resale price – thereby reducing your profits.
As OVEX offers instant trading, the prices you see are the prices you get.
OVEX also offers incredibly low fees – up to just 1% – which means you don’t have to worry about other expenses eating away at your arbitrage profits.