In the crypto world, there are multiple ways to invest and your choice of strategy will depend on your level of risk tolerance, revenue targets, market knowledge, preference for passive or active trading and more.
In this article, we’ll be looking at arbitrage and examining how it works and when it should be used as part of a broader crypto investment strategy.
How Does Crypto Arbitrage Work?
Crypto arbitrage generates revenue from temporary price disparities across exchanges. Put simply, for a short period, a crypto asset can be available on different exchanges at different prices at the same time. These temporary price discrepancies occur all the time due to differences in liquidity and trading volume between bigger and smaller exchanges.
To exploit these brief windows of opportunity, investors use an automated algorithm to scan multiple exchanges at once, monitoring hundreds of coins simultaneously around the clock to find price differences.
On finding an arbitrage opportunity, the algorithm will instantly buy the asset at the lowest available price then sell it on the exchange where the price is highest to make a profit on the spread before the price disparity can resolve itself.
The algorithm will work at lightning speed, executing hundreds of transactions simultaneously to generate the highest possible return.
What Are the Benefits of Crypto Arbitrage?
The primary benefit of crypto arbitrage, and the reason this investment strategy saw such a surge in popularity in 2022, is that price disparities will continue to emerge just as frequently in a bear market, so profits will remain consistent whether the market is in an upturn or a downturn.
Risk is close to zero as a sudden market shift cannot wipe out your profits, making arbitrage a great hedge against a tanking market.
Rather than HODLing and having to wait for the market to recover to see a profit from your Bitcoin, you can place it in a crypto arbitrage investment plan, and it will make a generous return right from day one. Profits are predictable, reliable, and generous, often exceeding 100% a year.
In addition, because crypto arbitrage platforms are by necessity automated, as they have to perform multiple functions simultaneously at top speed, no financial knowledge or effort is required.
No time needs to be spent analyzing current market conditions or formulating strategies. The system will do all the work for you so you simply need to sign up and deposit funds, and in most cases, the algorithm will take it from there.
What Are the Must-Have Features of an Arbitrage Platform?
When picking an arbitrage platform, you should settle for nothing less than the highest levels of versatility, reliability, and profitability.
These days, far and away the most popular crypto arbitrage platform is ArbiSmart, a fully automated arbitrage system and financial services hub, launched in early 2019.
ArbiSmart supports nearly 30 different FIAT and cryptocurrencies and offers investment plans, for a wide choice of time frames ranging from one month to five years, with higher profits the longer the contract.
The platform is EU authorized and generates consistent, competitive returns of up to 147% a year. Use of RBIS, ArbiSmart’s native token is incentivized, so the exact profit percentage that you earn, will be increased, the more RBIS that you hold.
Meanwhile, investment plan balances can be in Bitcoin, Ethereum, Euro, or any other supported currency, but plans in RBIS will earn a higher APY.
According to recent analyst projections, the RBIS token is set to rise to over 200 times its current value by the end of Q1 2023, meaning major capital gains for token owners.
These gains are expected to rise even higher by the end of Q2, since over the next five months, ArbiSmart will be introducing a number of additional RBIS utilities, including an NFT marketplace, a DeFi protocol offering a first-of-its-kind gamified yield farming program, and a professional crypto exchange.
Whether ArbiSmart is your platform or choice or one of the growing number of competitors entering the space, arbitrage offers dependable, sky-high profits, whichever direction the market is moving and exposes you to almost no risk at all. To start earning, right from day one, open an arbitrage investment plan today!
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