The value of popular cryptocurrencies like Bitcoin and Ethereum has spiked exponentially over the past year.<\/p>\n
Many South Africans simply purchased these cryptocurrencies, held onto them for an extended period, and then sold them when they showed a profit.<\/p>\n
However, the founder of cryptocurrency exchange OVEX, Jon Ovadia, said there are ways to make substantially more money through cryptocurrency arbitrage.<\/p>\n
\u201cIf you bought oranges in Polokwane for R100 and sold them in Joburg for R120, that is a simple form of arbitrage,\u201d explains Ovadia.<\/p>\n
\u201cThe reality is that arbitrage has been going on for centuries.\u201d<\/p>\n
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.<\/p>\n
This is possible because countries with exchange controls \u2013 including South Africa \u2013 end up paying more for internationally-traded cryptocurrency thanks to the supply of global currencies like the US dollar and Euro being restricted.<\/p>\n
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.<\/p>\n
One of the big risks of arbitrage trading is that if the cryptocurrency\u2019s value falls on the market where you plan to sell it, this can result in lower profit \u2013 or even losses.<\/p>\n
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.<\/p>\n
Have any questions? Find out more today from an OVEX arbitrage expert.<\/strong><\/a><\/p>\n It achieves this by using the TUSD stablecoin, which guarantees risk-free trading.<\/p>\n \u201cWhen the client buys USD from their bank to send overseas they are able to \u2013 at the exact same time \u2013 sell TUSD for a profit via the OVEX OTC (Over-The-Counter) desk, which will extend the client a credit line,\u201d said Ovadia.<\/p>\n 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 \u2013 which can cost around R2,000.<\/p>\n Depending on the size of your investment, this extra cost could cancel out any profit you make on the trade.<\/p>\n