How arbitrage is taking the crypto industry by storm

In the rapidly evolving blockchain ecosystem, grasping new financial opportunities is essential in achieving long-term success. Long gone are the days when crypto investors would just hold their coins and tokens in a wallet and wait for the price to grow.

Nowadays, blockchain enthusiasts in countries such as SA can maximise their crypto income by arbitrage trading. But what is arbitrage trading really, and why is it getting so popular?

Find out more about Ovex’s automated arbitrage service >>>

What is arbitrage trading?

Arbitrage trading means profiting from price differences on different cryptocurrency exchanges in different countries. Depending on the specific fiat currency pair, bitcoin purchases can be more or less pricey. 

The price differences between countries are caused by various country-specific policies regarding cryptocurrencies, and by different supply levels of currencies such as the US dollar or euro.

For example, purchasing bitcoin (BTC) with US dollars (USD) is slightly cheaper than buying bitcoin with rand (ZAR). Over the past few years, the price of bitcoin evaluated in ZAR was on average almost 5% lower than BTC’s value in USD.

In other words, crypto investors in SA can easily generate profit simply by purchasing BTC with USD on a foreign market, and then selling it for ZAR locally.

Learn how Ovex makes this process possible for the everyday South African >>>

Is arbitrage trading safe?

The main problem with arbitrage trading was that high market volatility could endanger the profitability of trading crypto between different markets. However, thanks to exchanges such as Ovex providing professional arbitrage trading services, it’s possible to profit from arbitrage trading in a maximally secure way, with fully mitigated risk.

With Ovex, profiting from arbitrage trading always guarantees you a capital gain. Even if some drastic price movements occur on the international cryptocurrency markets and the profitability of arbitrage diminishes at the time, any potential losses are covered by Ovex — simply put, the Ovex Arbitrage Service is a product with guaranteed profit.

Ovex is able to mitigate the risk and guarantee profitability by full market hedging. By selling crypto on credit in SA as soon as the FX trade is booked, Ovex can mitigate market risk, and is able to nullify the risk related to high volatility of the crypto market.

The fees on the platform are low, with the maximum fee charged on arbitrage being 1% — the fee will never be higher than that. But if the profitability of arbitrage trading is temporarily lowered, the fee will be lowered to less than 1% to keep the transaction profitable for the client.

Ovex offers low trading fees for all OTC clients, and fast settlements and immediate withdrawals. You can profit from arbitrage trading instantly, and withdraw your gains whenever you want.

How to start arbitrage trading with Ovex

Ovex provides crypto investors in SA with an opportunity to generate extra blockchain-based income by leveraging the differences between cryptocurrency prices on different markets. Using the Ovex arbitrage service is simple and doesn’t require any technical knowledge or a huge initial investment.

The Ovex platform is flexible, and you can set the amount and time of investment by yourself. Clients will always be guaranteed zero trading losses, and the fee they pay will never be higher than 1%.

To learn more about how the Ovex arbitrage service works, visit the Ovex website to find out how you can start profiting from arbitrage trading today.

This article was paid for by Ovex.