Bitcoin has started 2021 stronger than ever, with the price hitting over $37,000 and if you bought your BTC at this time last year, then you made nearly 300% profit. If you want to triple your Bitcoin again, you can’t just hope that the bull run will continue, since above all the crypto markets are known for their extreme volatility.
The best way to protect the funds you have already earned, while growing your capital significantly, at close to zero risk, is with crypto arbitrage.
What Makes Crypto Arbitrage such a Low-Risk Strategy?
Crypto arbitrage is widely considered by both the crypto and traditional global financial community to be an exceptionally low-risk investment strategy. The reason for this is that you are not exposing your capital to the risks of crypto market volatility. Instead, it involves exploiting temporary price inefficiencies across exchanges.
To see how it works, let’s use the example of ArbiSmart, one of the better-known names in the crypto arbitrage space.
ArbiSmart is an EU regulated crypto arbitrage platform, with a fully automated system that scans 35 different exchanges simultaneously to find price inefficiencies. These are instances, where for a short space of time, a cryptocurrency is available at different prices at once. As soon as the system identifies one of these temporary discrepancies, it buys the coin on the exchange where the price is lowest and then instantly sells it on the exchange where the price is highest to make a profit before the market adjusts, the price inefficiency resolves itself and the window of opportunity closes. Regardless of whether Bitcoin, Ethereum or any other cryptocurrency is experiencing a bull run or is in freefall, you can continue to earn from price inefficiencies at minimum risk.
As an investor, you register with the platform, deposit either fiat or cryptocurrency and then your funds are converted into RBIS, ArbiSmart’s native token to be used for crypto arbitrage trading. The automated algorithmic trading platform takes over from there identifying and exploiting crypto arbitrage opportunities on your behalf. Funds can be withdrawn at any time in either BTC, ETH, or EUR.
What about the Profit Potential?
Possibly the most remarkable characteristic of crypto arbitrage is that while risk is reduced to close to zero, this has not translated to equally low returns. In fact, passive profits from crypto arbitrage are reliable, steady, and exceptionally high, enabling you to triple the value of your Bitcoin within a very short time frame, irrespective of what is happening on the volatile crypto exchanges.
If we take ArbiSmart as our example again, you are guaranteed passive profits range from 10.8% to 45% a year depending on the amount invested. You can know ahead of time exactly how much you will be making on a monthly and an annual basis by looking at the Accounts page. There are no surprises as profits are set in advance and sudden market upheavals will have no impact in your earnings.
For example, if you were to invest 7 BTC at today’s value, in just a little more than three years you will have tripled your investment to 21 BTC, turning the equivalent of €210K into over €630K.
In addition, you will earn compound interest on your savings as well as capital gains from the steadily increasing value of the RBIS token. Since its introduction in early 2019, RBIS has already gone up in value by over 210%, and based on the company’s current growth trajectory, it is projected to go up by a full 3,000% by December of this year.
What Is Critical in a Crypto Arbitrage Platform?
We have already established that it is essential that you are able to earn a steady, guaranteed passive income. Each platform will offer a different ROI so shop around to find the platform that gives you the best return on your investment. It is also a good idea to find a company that will allow you to deposit and withdraw funds in a range of fiat and cryptocurrencies so that you have greater flexibility, when it comes to managing and accessing your capital.
Arguably however, the most important factor you need to consider is the integrity of your account. In the crypto arena, issues of security are paramount. Governments around the world have been slow to respond to the rapid developments in the crypto space, and there are criminal elements eager to take advantage of the lack of oversight. This is why it is vital that you only entrust your funds to a fully regulated platform.
As we mentioned earlier, ArbiSmart is regulated, but what does its FIU licensed status actually mean in terms of consumer protection? As an EU regulated platform, it must comply with strict requirements that include submitting to regular external auditing, separating client and company funds, maintaining sufficient operational capital and client account coverage, sustaining safe, functional software, and implementing KYC/AML identity verification procedures as well as rigorous data security protocols. As a result of all these measures, client accounts are shielded from fraud and other criminal activity, systems are safeguarded against hacks and if one were to succeed, client capital would be protected.
One more issue to take into account is the accessibility of service and support. If all they have is a chat bot, then look elsewhere. You should only hand over your hard-earned Bitcoin to a platform where you can be certain that someone will be instantly available to answer your questions, help you access your funds and resolve any technical issues that arise. The last thing you want is to invest a significant sum and then find that there is no one available to assist you at a critical moment. At ArbiSmart, for example, support is available via multiple channels, including Telegram, Twitter, Messenger, chat, email, phone, Viber and WhatsApp.
Lastly, you can do some online research. Check out what other members of the crypto community have to say about your preferred platform, looking at various social channels, client reviews and the industry press, making sure that the company hasn’t been caught up in any legal difficulties. Beware of any company that has a substantial amount of negative feedback relating to their ability to meet profit targets, the availability of support, or the ease and speed of the withdrawal process. Don’t settle for anything less than a platform with an excellent online reputation. ArbiSmart, for example, has a top rating on Trustpilot, the popular consumer review site, and has received strong positive coverage from major global crypto publications.
Unsurprisingly, crypto arbitrage trading is seeing a surge in popularity, not just due to the general rise in mainstream adoption of digital assets, but because it is uniquely able to provide high returns at close to zero risk. With no effort at all, it allows you to reap the financial benefits of the lucrative Bitcoin exchanges without exposing you to the dangers of crypto market volatility.
* This post has been paid. The Cryptonomist didn’t write the article nor has tested the platform.