Arbitrage is fast becoming one of the most popular ways to make money from cryptocurrency.<\/p>\n
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.<\/p>\n
The basic concept behind arbitrage is incredibly simple.<\/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 Jon Ovadia, founder of leading cryptocurrency trading platform OVEX.<\/p>\n
\u201cThe reality is that arbitrage has been going on for centuries.\u201d<\/p>\n
This already happens regularly in several segments, most notably in the stock market.<\/p>\n
\u201cPeople 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,\u201d explains Ovadia.<\/p>\n
Cryptocurrency arbitrage involves the purchase of cryptocurrencies cheaply on certain exchanges, and selling them on exchanges where they cost more.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Exploiting these pricing differences is a quick and easy way to make money.<\/p>\n
If you are interested in taking advantage of cryptocurrency arbitrage, OVEX is the platform you should use.<\/p>\n
They offer low fees, instant trading, and an intuitive platform \u2013 all of which results in quick and easy money.<\/p>\n