Everyone seems to be talking about Bitcoin right now and the reasons are pretty clear. Firstly, in these economically unstable times an alternative to the traditional currency markets is obviously going to be attractive. Also, Bitcoin is growing in value at an incredible rate. This means that if you already have Bitcoin in your portfolio, you will want to examine how you can make the most of your crypto capital and not just let it sit idle.
Why Should You Grow Your Bitcoin Savings?
The price of Bitcoin is only going to rise. According to the 2020 Crypto Research Report (CRR), which projects cryptocurrency prices, Bitcoin is expected to continue increasing in value and hit above $20K by the end of 2020 and rise to just over $340K in 2025. The report claims that if Bitcoin continues on its current growth trajectory, it will reach 10% penetration, with a price of almost $400K, by 2030.
What Options Do You Have for Investing Your Bitcoin?
There are countless ways in which you can invest your Bitcoin. You can exploit the current price boom and day trade the currency for rapid, risky, but potentially high returns. Alternatively, you can HODL, holding on to your Bitcoin for the long term as you wait for it to appreciate. This is far less risky, but the disadvantage is that it means your coins are just sitting doing nothing and are not generating additional profits. Then of course, there is crypto arbitrage, an investment strategy that is widely acknowledged to be one of the lowest risk forms of investing. What you may not have heard is that it can also offer exceptionally high returns.
What Is Crypto Arbitrage and What Are Its Benefits?
Crypto arbitrage is a trading strategy that involves taking advantage of price discrepancies between crypto exchanges. Essentially, there are short periods during which a cryptocurrency will be available on multiple exchanges at once, but at different prices. The market will eventually adjust and the price disparity will resolve itself, but during this window of opportunity, a crypto investor can buy the coin on the exchange where it is being offered at the lowest possible price and then sell it on the exchange where the price is highest to earn a profit.
The benefits are undeniable. As mentioned above, the risks are negligible, yet the returns are unparalleled. In addition, since exploiting crypto arbitrage opportunities requires the speed and efficiency of an automated algorithmic trading system, you can get on with the rest of your day, while the platform trades on your behalf, generating revenue, without requiring you to have any prior knowledge or make any effort researching currencies or tracking market patterns and price shifts.
We can take one of the most popular, EU licensed crypto arbitrage platforms, ArbiSmart, as an example. The way the platform works is that you sign up, deposit your Bitcoin, or fiat if you prefer, and then the algorithm gets to work. It scans 35 different exchanges simultaneously, 24 hours a day looking for and then acting on crypto arbitrage opportunities, handling a huge volume of trades at once.
What Should You Be Looking for in a Crypto Arbitrage Platform?
Obviously, everyone’s number one priority when it comes to investing is making as healthy a profit as possible. At ArbiSmart, the platform generates guaranteed profits reaching up to 45% a year, depending on the size of your deposit. Basically, as with all investment platforms, the amount you put in will impact the size of your return.
The exact amount that you can expect to make on your Bitcoin, or Euro, can be viewed in the company account page, which lays out monthly and annual profits for each account level. There is also a useful profit calculator, which will inform you how much you need to invest to reach a specific profit target within a given time frame. Equally, it can show you your projected earnings, based on a specific deposit amount.
While profits are of course of primary importance, the safety of your savings is also a major consideration. That is why under no circumstances, should you invest with an unregulated platform.
In the crypto sphere there are all kinds of bad actors, from individual’s misrepresenting themselves, to hackers and companies that disappear overnight. So, if you are investing your Bitcoin, you want a company like ArbiSmart that is well-established, with an accessible support team, a solid reputation across social media, on consumer review sites and in the press.
In addition, ArbiSmart is fully licensed and regulated across the European Union, with an FIU license that ensures the company has adequate funds to operate and cover client accounts, the software is secure and functions reliably, company and client funds are held separately and client verification measures are implemented.
ArbiSmart’s license not only covers its crypto arbitrage platform, but also entitles the company to provide wallet services. In 2021, the company will offer an interest-bearing wallet for fiat and crypto, meaning that instead of leaving your Bitcoin sitting idle, you can earn interest of up to 45%, depending on the size and currency of the deposit, as well as the type of savings account chosen. Wallet holders will be able to choose a flexible account, where profits can be withdrawn at any time, or a high-interest account, which can be closed for a pre-determined time frame, with higher interest for a longer account closure.
So, if you want to benefit from the incredible growth of Bitcoin and make money from your coins with zero effort then crypto arbitrage offers a great low-risk, high-return option both for experienced crypto investors and novices with some cash to spare.
*This post has been paid. The Cryptonomist has not written this article nor tried the platform.