Unless you’ve been living under a rock for the past year, you’ll have seen that Bitcoin has skyrocketed in price, gaining hugely in popularity and legitimacy, a development that has also had a domino effect on the value on other cryptocurrencies. Bitcoin is clearly doing incredibly well despite some recent major price swings, but how long will the good times last?
What’s Next for Bitcoin?
Blockchain is almost definitely here to stay, but the future of the most famous cryptocurrency to be based on this technology is still up for debate. With the supply of Bitcoin dropping and demand rising, projections tend to be positive, and some are even arguing that Bitcoin will rise above $100,000 in 2021.
However, we are still early in the adoption curve. Obviously, no one can say for sure what the future holds, but when it comes to crypto there is only one certainty- market volatility. Huge swings in price are a given, with the last month alone showing a drop in the BTC dollar price from $41,000, to $30,000 and then a rapid climb all the way back up again. With wild price fluctuations comes incredible risk, so you need a way to get in on the action while still protecting your savings.
What Can You Do to Protect Your BTC Capital?
The best way to safeguard your crypto capital is to choose a comparatively safe investment strategy. Crypto arbitrage is widely acknowledged to be one of the lowest-risk forms of investing, by retail investors, financial institutions, hedge funds and investment firms. The reason is that does not involve trading on market volatility. Instead, it works by taking advantage of temporary crypto exchange price inefficiencies. For a brief time, a cryptocurrency can be available at different prices on different exchanges, at the same time. The market will eventually adjust to compensate for the price discrepancy, but there is a small window of opportunity in which the coin can be bought on the exchange where the price is lowest and then sold on the exchange where the price is highest to make a profit. To see how this is done, let’s use ArbiSmart, one of the more popular, regulated, crypto arbitrage platforms as our example.
The way it works is that the platform is fully automated and an algorithm scans 35 different exchanges simultaneously, 24 hours a day to identify crypto arbitrage opportunities. The platform does all the work. You just sign up, deposit funds in either crypto or traditional fiat currency and the platform takes over, finding and taking advantage of price inefficiencies for returns of up to 45% depending on the size of your investment. This automation capability is critical, because the speed and efficiency required to exploit price inefficiencies that sometimes only last a matter of minutes, would be extremely difficult to achieve manually.
It should be noted that as an FIU licensed platform, ArbiSmart is further mitigating your risk. While crypto investing offers exciting, lucrative opportunities, you are also vulnerable to increased danger from hacks and fraud, due to the anonymity of the crypto space as well as the lack of legislation and consumer protections, as regulators world-over struggle to keep pace with the rapid developments in this emerging asset class. As a result, you only want to entrust your money to an investment platform that is fully licensed and regulated. For example, ArbiSmart has to comply with strict EU regulations, including submission to regular external audits, ID verification and anti-money laundering procedures, tough data security protocols, separation of client and company funds, the maintenance of sufficient operational capital and account insurance protection.
What Kind of Profit Can You Earn with Crypto Arbitrage?
Without a doubt, one of the most significant advantages of Bitcoin investing is its profit potential. While many of those who got on board early are now millionaires, the profits from crypto investing are anything but predictable.
Most of the time, there is a trade-off – high risk can lead to high returns but if the risks are lowered then so are the potential profits. For example, you might be able to make 10% a year on stocks, but only 5%-6% on bonds and no more than 1% interest on average from the bank.
In contrast, crypto arbitrage offers low risk and high returns, with predictable results. In fact, going back to our ArbiSmart example, a study of the company’s Accounts page will tell you precisely how much, in advance, you can expect to make on a monthly and annual basis depending on the amount you invest, with steady returns starting at 10.8% and reaching as high as 45% a year. In addition, the company also offers compound interest on your profits as well as capital gains on the growing value of the company’s native token, RBIS, in which all platform transactions take place. In the two years since the coin was introduced, it has risen in value by 210% and based on the steady current growth in client acquisition, it is projected to go up by the end of 2021 by as much as 3,000%.
This sense of financial reliability is essential in these turbulent times and feeling secure in the knowledge that your chosen crypto arbitrage platform is going to deliver on its promises is critical. For this reason, you want to check online to get a feel for any company before you invest with them. See what people have to say on Twitter, Telegram and Reddit and check out online consumer review sites like Trustpilot, which is popular with the crypto community. ArbiSmart for example has a 4.2/5 star-rating, with reviewers confirming that the company offers great support via multiple channels, provides fast, hassle-free withdrawals in fiat or crypto at any time, and meets it profit guarantees.
So much in life has been uncertain over the past year. It feels hard to imagine that everything will go back to the way it was before COVID 19 either in the way we interact socially or financially. Over this period, it is no surprise that Bitcoin has boomed, rising in value to hundreds of times its pre-pandemic price. Investors have been looking for alternatives to weakening fiat currencies, being drawn to a decentralized financial system that is independent from their failing national economies. However, the inherent risk should not be underestimated and cryptocurrencies tend to soar and crash with dizzying speed. This is leading those looking for a safe home for their savings when the future is so uncertain, to view crypto arbitrage as the best of all worlds. It offers the lucrative opportunities unique to crypto investment, with exceptional, security and reliability. To learn more about crypto arbitrage, check out this fact page, or click here to get started and invest right now.
*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.