Have you ever heard of arbitrage?

Investopedia best explains arbitrage as,

…the simultaneous purchase and sale of the same or similar asset in different markets to profit from tiny differences in the asset’s listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms.

As a simple example, consider mining giant Glencore, which is listed on more than one stock exchange.

On the JSE, Glencore’s shares trade at R90.11. Meanwhile, on the London Stock Exchange (LSE), Glencore’s shares trades at £392.63 or R90.14 in rand terms.

With arbitrage, you could exploit the price difference to make a risk-free profit.

You could buy Glencore shares on the JSE. And then immediately sell them on the LSE – netting you a profit of 3c per share.

Of course, Arbitrage is not limited to stocks.

Traders use this strategy to make risk-free profits in bonds, currencies, commodities, and cryptocurrencies.

In fact, in a recent interview with Guy Algeo from Finova, he told me, thanks to our foreign exchange regulations, there is a way for South Africans to virtually guarantee their profits using crypto arbitrage. When I heard this, I begged him to tell me more…

He said it’s possible to make 1% or more per day on your money and it’s pretty much guaranteed!
1% may not sound like much but think about it…. That’s effectively 30% a month or 365% in a year! And … it’s virtually guaranteed.

So, here’s how it works…

Here is how you can make an easy 1% PER DAY on your money with Crypto Arbitrage

Because Cryptocurrency is relatively new, the markets are less efficient and the price difference between markets is typically 1% net of all costs. In other words, you could generate a return of 1% every day from crypto arbitrage.

Crypto arbitrage doesn’t attempt to predict any price movements. Instead, crypto arbitrage takes advantage of price differences of a cryptocurrency on different markets. That means, you buy at a lower price on one exchange and sell at a higher price on another to bank a profit.

And all the risk can be eliminated and the profit virtually guaranteed – because you are simply playing the difference in the foreign exchange price not the price movement of the crypto itself.

Just think about it – 1% or more per day compounded could lead to some serious profits!

How much do you need for crypto arbitrage?

Typically, the minimum starting capital for crypto arbitrage is R100,000. However, it’s recommended you start with at least R200,000 as some costs are fixed, so R200,000 or more helps optimise the profitability.

Now, remember, every SA resident has a R1 million offshore allowance without needing approval. That means, you can do multiple transactions to use your R1 million offshore allowance for crypto arbitrage before the end of the year if you haven’t used it.

It doesn’t mean you have to have R1million in cash to profit from this! It just means you have the right to take R1million offshore without having to complete any paperwork with SARS.

Of course, if you really want to take maximum advantage of crypto arbitrage then you can also apply for your Approval for International Transfer (AIT) with SARS, which gives you access to trade a further R10 million of transactions. I’ll explain how to apply for an AIT in another article, let’s just focus on how you can take advantage of crypto arbitrage using your R1 million allowance before year end!

How you could make R10,000 in one week with Crypto Arbitrage.

For example, if you were to complete five transactions using just R200 000 starting capital with each transaction returning 1.%.
That would translate into R2000 profit on each trade, once you complete the five trades, that is R10,000 profit or 5%, which can be achieved in approximately one week.

Obviously, the goal is to supercharge these returns using the additional R10 million AIT, which will allow you to do another 50 trades of R200,000.

At Finova they have been helping clients lock in these profit for 7 years, and they have streamlined the process. They are also an approved Crypto Asset Service Provider, so your assets will be in good hands. You can apply or learn more about the crypto arbitrage service at Crypto Arbitrage!

Here’s to transforming your wealth

PS. If you haven’t already used your R1 million offshore allowance then you can make a quick R10k if you act now. Then come January , you can repeat the exercise and effectively have pocketed R20,000 in just two months! Go here to learn more.

Not a subscriber to Money Morning?
You can get free daily recommendations like these with Money Morning eletter. Just sign up here.

Moneymorning-300x56