If you’ve done any research on low-risk crypto trading or navigating the crypto bear market in the last year or so, you’ll almost certainly have come across the term crypto arbitrage. This refers to an automated investment strategy that generates profits from temporary price differences across exchanges
To get to grips with why there is so much interest in crypto arbitrage these days, and whether it is worth a go for the average investor, let’s examine the strategy in greater detail.
Why Arbitrage Is a Must-try Strategy
Arbitrage is seen by many crypto owners as the smartest, safest choice, particularly in a falling market. To begin with, it offers s incredibly high profits, that can reach well above 100% a year. Since arbitrage tends to be fully automated, as it requires a speed and efficiency that cannot be achieved manually, the process of making money becomes completely hands-off requiring no specific experience or market expertise. In addition, even if there is a sudden crash and the market plummets, arbitrage is a bear-resilient strategy that will continue to provide a steady profit. Risk is reduced almost to zero and the investor benefits from a valuable hedge against a market downturn.
How Profits Are Generated
Crypto arbitrage works by taking advantage of instances where a cryptocurrency is available at different prices at the same time. An algorithm scans hundreds of coins across multiple exchanges at once to identify price discrepancies, buying at the lowest available price then selling at the highest to make a profit on the spread.
Why It Works in All Market Conditions
The main reason for the peak in interest in automated crypto arbitrage in 2022 has been the fact that even in a bear market it continues to generate a steady reliable profit, that remains the same in a downturn or an upturn.
This consistency is possible because price differences across exchanges arise frequently, for a range of reasons like disparities in liquidity and trading volume between larger and smaller exchanges, which emerge just as regularly in a bear or bull market.
An Arbitrage Example: ArbiSmart
The current leader in the field is ArbiSmart, a financial services project that has been offering EU authorized automated crypto arbitrage since 2019. A major reason for its popularity is that is offers profits of up to 147% a year and provides a secure service with a solid reputation.
Let’s dig in to how ArbiSmart generates profits to understand how an arbitrage platform works and the revenue channels it can offer.
At ArbiSmart, there are a number of choices to be made based on your financial capabilities and requirements. Money can be deposited in nearly 30 supported FIAT and cryptocurrencies and investment contracts can be of various lengths. Users can lock funds for as little as 1 or 3 months or for extended periods of 18 months, 2, 3, or 5 years, earning a higher profit the longer the time frame of the plan.
The exact amount that an investor earns from crypto arbitrage depends on their account level, which is determined by how much RBIS, ArbiSmart’s native token that they own. A basic profit will be paid out even if a user has no RBIS but owning more tokens means a higher account status and a better APY on investment plan balances in Bitcoin, Dogecoin, Euro or any other preferred currency. As a further incentive to buy the native token, balances in RBIS earn a 3-times higher profit than those in any other currency.
Also, crypto arbitrage owners can choose how to receive their daily profits. The money can be sent to a separate, available balance for withdrawal at any time, or sent at the end of each day directly into the locked savings balance to earn a better rate. Alternatively, the daily pay out can be automatically converted into RBIS, and locked for the duration of the investment contract, and this option offers the highest return.
All these incentives are raising demand for RBIS, a token with a restricted supply, which analysts forecast will rise in value from under 50 cents to nearly $3 by the end of Q1 2023.
Demand will also be strained by the launch of a number of new RBIS utilities in the pipeline for H1 2023, including a DeFi protocol, providing yield farming services with special gamification features, a cryptocurrency exchange and an NFT marketplace. As a result of these developments, the price is likely to rise leading to generous capital gains for anyone who owns RBIS.
5-Minutes from Start to Finish
Setting up an account takes just a few minutes and once it is done you can move on with your day, while the automated system goes to work on your behalf.
- Sign up, by filling in the brief form
- To increase your APY you can buy RBIS via the RBIS Management page in the dashboard, with just a few taps.
- Make a deposit in any of nearly 30 different supported FIAT or cryptocurrencies
- Choose the currency and length of your investment plan, a deposit amount, and the way you wish to receive your profits, which are paid out daily.
- Click CONFIRM and you’re done.
Whether you pick ArbiSmart or one of its growing number of competitors, with arbitrage you are enjoying limited exposure and exceptionally high, predictable returns even under the most volatile market conditions.
Anyone registering and opening a long-term ArbiSmart investment plan within 3 days of this article going live will receive an immediate 30% bonus.
Before the window closes, open a plan today!
*This article was paid for. The Cryptonomist did not write the article or test the platform.