What is arbitrage?
Arbitrage is fast becoming one of the most popular ways to make money from cryptocurrency.
However, as with many buzzwords that are floating around in the cryptocurrency space, it is important to understand what it is and how it works if you wish to utilise this opportunity.
The concept of arbitrage
The basic concept behind arbitrage is incredibly simple.
“If you bought oranges in Polokwane for R100 and sold them in Joburg for R120, that is a simple form of arbitrage,” explains Jon Ovadia, founder of leading cryptocurrency trading platform OVEX.
“The reality is that arbitrage has been going on for centuries.”
This already happens regularly in several segments, most notably in the stock market.
“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,” explains Ovadia.
Cryptocurrency arbitrage
Cryptocurrency arbitrage involves the purchase of cryptocurrencies cheaply on certain exchanges, and selling them on exchanges where they cost more.
For South Africans, this involves purchasing cryptocurrencies like Bitcoin on overseas exchanges, transferring them onto South African exchanges where they are more expensive, and selling them for up to a 5% profit.
This is possible because South Africa has exchange controls that result in local traders paying more for internationally-traded cryptocurrency – thanks to the limited supply of global currencies like the US Dollar and Euro.
Exploiting these pricing differences is a quick and easy way to make money.
OVEX
If you are interested in taking advantage of cryptocurrency arbitrage, OVEX is the platform you should use.
They offer low fees, instant trading, and an intuitive platform – all of which results in quick and easy money.
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