Bitcoin is incredibly popular as an investment option – both in South Africa and globally.
Many purchase this cryptocurrency as a medium-to-long-term investment, and some have even become millionaires purely through the rise in value of Bitcoin.
However, fewer people are aware of Bitcoin arbitrage – the best way to make quick profits off this cryptocurrency.
Leading cryptocurrency trading platform OVEX is one of the most popular destinations for South Africans to engage in cryptocurrency arbitrage opportunities, with Bitcoin being a particularly suitable arbitrage medium.
Here’s how OVEX customers are getting great value from Bitcoin arbitrage.
How arbitrage works
The basic concept of arbitrage is surprisingly simple, according to OVEX founder Jon Ovadia.
“If you bought oranges in Polokwane for R100 and sold them in Joburg for R120, that is a simple form of arbitrage,” he explained.
“The reality is that arbitrage has been going on for centuries.”
Cryptocurrency investors can benefit from the same phenomenon by buying their coins in markets where the transaction costs less, and selling them in markets where they are more expensive.
OVEX leverages the fact that Bitcoin costs more to buy in South African rand markets than it does in US dollar markets.
In fact, over the past few years the average premium paid in rand markets compared to dollar markets for Bitcoin is 4.6%.
OVEX has the ability to facilitate the purchase and sale of Bitcoin in both dollar and rand markets, meaning its customers can take profit off these price differences.
South Africans can use their Single Discretionary Allowance (SDA) and Foreign Investment Allowance (FIA) – up to R1 million and R10 million respectively – to earn arbitrage trading profits.
Get started with Bitcoin arbitrage
OVEX makes it easy to reap the benefits of Bitcoin arbitrage through its intuitive automated platform.
It also offers instant trading and 1% fees – so you are guaranteed no trading losses.
This makes Bitcoin arbitrage through OVEX a safe and easy way to make money.