This last year has been insane for Bitcoin- it has risen from around $8,000 per BTC to hit a record of just over $64,000, with some dramatic ups and downs along the way, and the rollercoaster ride isn’t over yet.
The weakening of traditional currencies as a result of the pandemic and increased crypto adoption by corporate giants and financial institutions have given Bitcoin and other cryptocurrencies a huge boost, enhancing their legitimacy. While crypto prices may be volatile, the surge in popularity in this rapidly growing asset class seems to be here to stay.
If you want a low-risk strategy for investing with Bitcoin that provides a steady, reliable return, is not time-consuming and doesn’t require extensive market expertise, then there is only one solution – crypto arbitrage.
How Does Crypto Arbitrage Work?
Crypto arbitrage is an increasingly popular, low-risk investment strategy employed by financial institutions, hedge funds, corporations, and retail investors world-over that does not expose you to crypto market volatility.
The way it works is by taking advantage of temporary price inefficiencies across exchanges. These are brief windows, lasting a matter of minutes, until the market corrects, in which a cryptocurrency is available on different exchanges, at different prices at the same time.
To see how it generates a profit, let’s use ArbiSmart, one of the better-known players in the field as our example. ArbiSmart is an EU licensed, automated crypto arbitrage platform. The system is connected to 35 different exchanges, which it scans simultaneously, 24/7, looking for price inefficiencies on hundreds of different cryptocurrencies. The second it identifies a crypto arbitrage opportunity, it will buy the coin on the exchange where the price is lowest, and then instantly sell the coin on the exchange where the price is highest to earn a profit before the market adjusts to resolve the inefficiency.
What Are the Benefits?
As we can see, successfully implementing a crypto arbitrage strategy demands a speed and efficiency no human can match, so an automated system is required to scan multiple exchanges at once and instantly react to numerous opportunities simultaneously, around the clock. As a result, one of the main advantages of crypto arbitrage is that since it involves the use of an algorithmic trading system, you can simply sign up, deposit funds and then get on with your day, while the algorithm does the rest.
In addition, the risks are minimal and the opportunities to profit are not limited by what is happening to Bitcoin or any other digital currencies. Crypto arbitrage offers a great hedging opportunity because whether crypto market prices are sinking into the floor or going through the roof you can always make a steady, reliable profit from price inefficiencies across exchanges.
Another benefit to consider is the consistency and stability of crypto arbitrage profits, particularly when compared with the unpredictability of day trading, where you are vulnerable to the incredible volatility of the crypto market. For example, at ArbiSmart, you can see, in advance, exactly how much you will make per month and per year, on the Accounts page of the company website. The amount you can expect to earn ranges from 10.8% to 45% a year, depending on the size of your investment. This provides valuable financial clarity and allows you to plan ahead with confidence.
The biggest advantage of all, of course, is that crypto arbitrage offers exceptional returns, outperforming almost all other investment strategies. Let’s say you invest just 5 BTC, which is currently equal to just over $240,000. In a single year you will have made a passive income of 39%, raising your savings to over $335,000. Keep in mind that your account balance is also likely to reach much higher, for two reasons. Firstly, you will be earning compound interest on your crypto arbitrage profits, and secondly, you will be earning significant capital gains on the rising value of RBIS, ArbiSmart’s native token, which has already more than tripled in value since it was introduced just two years ago.
Once you open an ArbiSmart account and deposit funds, your money is converted into RBIS for use by the company’s algorithmic trading system, though you can withdraw your funds at any time in either fiat or crypto. RBIS has experienced incredible success since it was introduced in early 2019, having already gone up by 350%, and analysts are predicting that it could rise to 20 times its current value by the end of 2021. One of the reasons for this projection is that the company has grown by 150% year-on-year and has a number of new regulated crypto products and services in the pipeline for Q3 and Q4, 2021, creating valuable new token utilities including ArbiSmart’s much-anticipated interest-bearing wallet,. As the popularity and liquidity of the platform continues to increase, supply of the token, which is limited to 450M, will drop. In addition, RBIS is in the process of being listed, and once the token is tradable on the exchanges, in the coming months, this will send the price even higher.
What Are the Risks?
There is always a heightened level of risk involved in entering the crypto space, since governments have been slow to legislate this emerging new asset class, and as a result it is severely under-regulated. This danger is compounded by the fact that the ability to remain anonymous makes the digital currency world an attractive option for criminal elements intent on fraudulent activity.
Transparency, security and accountability are key, so to protect yourself you need to choose a reputable platform that is fully licensed and regulated. ArbiSmart, for example, is fully EU licensed. This is significant because compliance with regulatory requirements demands that the company submit to external auditing, implement rigorous data security protocols, follow strict anti-money laundering and client ID verification procedures and maintain sufficient operational capital as well as separate company and client accounts.
ArbiSmart also has a top rating on Trustpilot and other online review sites in addition to positive feedback across social media for its high levels of support as well as its generous and reliable passive profits.
Crypto arbitrage is the best way to rapidly grow your Bitcoin capital, with zero effort and almost no risk at all. If you’re interested in learning more about this increasingly popular investment strategy, click here, or if you’re ready to start doubling your BTC, become a crypto arbitrage investor today!
*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.