How Arbitrage Trading Can Double Bitcoin and Ether?

As we emerge from last year’s extended bear market, crypto owners are beginning to consider new investment approaches. In today’s climate, by far the most popular strategy is arbitrage, due to its effortlessness, its exceptionally low risk and potentially huge returns.

ABC of Crypto Arbitrage

1. So, what’s the general idea?

Crypto arbitrage is an investment strategy that profits from short windows where a digital currency is available across exchanges at different prices simultaneously.

2. What causes these price differences?

Temporary price differences can have a number of causes, for example differences in trading volume and liquidity between larger exchanges and smaller ones.

3. How do crypto owners make money from arbitrage?

Essentially, arbitrage involves buying a product for the cheapest available price in one marketplace and then selling it at a higher price elsewhere. This can be done manually, but in the case of crypto arbitrage, the best option is a fine.

An algorithm integrated with multiple exchanges will simultaneously track hundreds of cryptocurrencies, 24/7, looking for price differences. When it finds a difference, it will buy the coin on the exchanges where the price is the lowest and then, within a fraction of a second, sell it on the exchange where the price is the highest to make a profit.

These robots are able to work at top speed and execute a large volume of arbitrage trades at once, on your behalf, to optimize your earning potential.

Arbitrage vs. other strategies

Compared to other types of trading strategies, crypto arbitrage is considered exceptionally low risk, primarily because you do not open positions on exchanges, as you would if you were, for example, swing trading. No matter which direction prices move, you can still make money from price differences.

Also, unlike just HODLing, with arbitrage, during a downturn, you don’t have to wait for the market to recover, but you can make a profit from day one, potentially reaching well over 100% a year.

The upside of arbitrage

• The risk is minimal since a sudden market shift cannot wipe out your profits, making arbitrage a good hedge against falling prices.
• Profits are reliable and consistent, occurring equally often in a bear or bull market.
• Automated arbitrage requires no financial knowledge or effort, as you do not need to spend time analyzing the market, then formulating or implementing strategies.

Profitability and safety

High profits and airtight security are clearly the most important factors when choosing a service provider, and in both of these areas one crypto arbitrage platform stands out from the crowd. ArbiSmart, launched in 2019, is a leading financial services hub, operating with full EU authorization that has a fantastic reputation as a reliable, transparent manager of crypto capital.

ArbiSmart supports 30 different FIAT and cryptocurrencies, from Euro and USD to Bitcoin and Dogecoin, and has a large selection of arbitrage investment plans, where funds are locked and used to trade crypto arbitrage on your behalf. The plan contracts can be for short periods of just one month or 3 months, or for longer periods of 18 months, 2, 3 or 5 years, with a higher profit percentage the longer the time frame of the plan.

ArbiSmart generates the highest profit of any legitimate competitor in the arbitrage space, at up to 147% a year, regardless of market conditions. The exact amount you earn will depend on your account level, which is based on how much RBIS, the native token, you have. So, more RBIS means a higher arbitrage profit on the investment plan balances USD, XRP, ETH or other supported currency. You can choose to open a balance in RBIS for an even higher APY.

For those who want low risk, low effort to invest in soaring, reliable returns in 2023, arbitrage may be the ultimate investment strategy.

Do you want to start making money from today? Open an investment plan for arbitrage now!

Notice: this article was not written by the BeInCrypto team and should not be considered investment advice.