In the investing world, there are many ways to profit from rising or falling markets. Investors usually tend to either put money with professional trading firms or invest themselves. Since 90% of traders lose money, people feel much more comfortable giving their money to professional institutions to do the job for them. Those firms usually have better access to rates, prices, fast execution, and algorithmic trading bots working 24/7. In this article, we’re going to see what does Crypto Arbitrage really means and how to tap into this market as a normal investor.
What is Arbitrage?
When we talk about financial markets, we talk about a marketplace where buyers and sellers post their desired prices. Sorting those prices from highest to lowest and lowest to highest respectively gives you the destined prices for buying and selling on this specific marketplace. When you have many marketplaces, those destined prices differ, creating arbitrage opportunities. Arbitrage is the activity of buying from a marketplace at a lower price, then selling it directly at that other marketplace for a higher price to benefit from price differences.
Can ANYONE engage in Arbitrage?
Theoretically, anyone can do just that. But practically, this isn’t the case. And this is due to several factors:
- Price Fluctuation: Suppose you bought at a marketplace an asset for 10$ and you plan to sell it back at another marketplace for a price of 10.3$. Suddenly, prices fall and the maximum price on any marketplace becomes 9.6$. There goes your opportunity.
- Speed of transaction: To hedge price fluctuations, traders must have unparalleled access to many marketplaces at the same time, with the ability to transfer the assets between them easily, along with a super-fast connection speed.
- High Fees: Taking back the 10$ asset price, you will never be able to go to that other exchange without any cost incurred, such as buy fees, transfer fees, deposit fees, selling fees, and withdrawal fees, which all amount to more than 0.3$.
- Marketplace access: It is true that this other exchange has a selling price of 10.3$, but do you already have an account with them? If not, the process of opening a new account and pass all the KYC requirements would take some time before you get approved and can start trading on this exchange. Prices would definitely have changed before you get there.
How to REALLY benefit from Arbitrage
Arbitrage is a sophisticated process that is, till now, only available to big-shot investors family offices, and big financial institutions that have the tools and infrastructure needed to engage in such advanced activities. But recently, there has been a surge in companies that open up this opportunity for small investors, by pooling their funds and handling the infrastructure side of the business. Meet Arbismart, a crypto platform that brings arbitrage to the normal investor. This company surfaced with a strong mission: Bringing Arbitrage to the masses. As discussed previously, this activity is not easy at all and requires a solid infrastructure, along with a solid connection with multiple marketplaces.
What is Arbismart?
Arbismart is an EU-regulated company (as per their website), that offers a simple crypto platform to users. The platform basically does all the hard work of arbitrage, and users benefit from Hefty returns on their deposits. The company pools investors’ funds, does arbitrage activities on specific crypto assets, then distributes the profits accordingly. It is very easy to start on Arbismart:
- The first step is funding your account
- The second step is exchanging your deposited funds into cryptos
- The third step is to sit back and watch your portfolio grow…easy
Now you might be asking yourself, why this specific company. Well, after a little look at their website, we can see that they offer very high reliability and better rates than any other competitor in the crypto market. This is crucial, as the hardest obstacle in arbitrage is being able to keep the fees to a minimum. In addition to competitive rates, Arbismart implements high-security measures to keep their accounts safe, thus guaranteeing minimal risk.
Being safe and having competitive rates is not the only advantage for using Arbismart, but they offer a wide range of cryptocurrency options for deposits. So in case you had specific crypto at hand, you don’t need to go out of your way to swap back and deposit. It’s a one-stop-shop!
Let’s not forget about how Arbismart adheres fully to EU regulations, by having full EU licensing and compliance to strict AML and KYC measures. This in turn gives investors ease of mind when it comes to investing with the best. Not sure still about it? Check out their smart platform, which is super user-friendly thanks to their interactive dashboard.
Now that you saw how easy it is to get started on Arbismart, let’s dive deeper into each feature they have on their platform:
This is where the investor would see a quick summary of his current portfolio. You can see a total EUR Balance, a Total Token Balance, and a Total Value. On this page, you can also directly access the withdrawal section or the funding process. All the announcements and training material are also right on this main page.
In this section, the user will be able to see all the funding options that are available in order to start investing. Arbismart supports the following options:
The minimum investment sits currently at just 500 euros, which is basically super affordable for anyone who is looking to tap into arbitrage and crypto at the same time.
In this section, users can select their desired investment plan. It can either be a simple saving plan, internal swap, compounding, and buying and selling Arbismart’s own token, RBIS.
This is where users can view all the profit history throughout their investment journey. Investors are presented with a nice performance chart that tracks the overall variance since the start of the investment. Also, they can see a table to see a more detailed view of the profit history.
This is where things get interesting. Investors have the ability to view a “live-table”, showing all the arbitrage opportunities across many important crypto platforms, with the designated crypto asset that has a price change. You can also see the potential profits that can be generated for each crypto asset.
In this section, the user can clearly see his account status. In fact, the more active the investor is, and the higher his investment is, the better his chances of getting higher profits. This is true for any business. If you go to the bank and put in a higher deposit, they will definitely give you better rates, guaranteed.
This section shows how Arbismart is highly committed to full compliance. The verification step is very easy, yet very rigorous. They ask you to submit the usual KYC documents such as an ID and utility bill, or bank statement for address verification
Arbitrage is one way of making money off the moving markets. It is a complex process that involves many variables and might be a losing activity if not practiced properly. As the famous saying goes, “Giving your bread to the baker” is a smart idea, where companies like Arbismart handle the complicated activities on your behalf.