Crypto Arbitrage In South Africa
Crypto arbitrage is the simultaneous buying and selling of crypto to earn a risk free profit. The South African crypto arbitrage opportunity exists because crypto asset prices are higher in South Africa compared to overseas due to exchange controls. This means that if you are able to purchase these assets offshore, using foreign currency, you will be able able to sell them in South African at a profit. The risk is the FX and crypto price volatility you face while waiting for your transactions to settle. Fivewest has therefore designed an simple, seamless arbitrage service to capture this profit and give you peace of mind. We've made this service easy to use so you can get the benefits of the arbitrage with peace of mind.
Benefits for our clients
Relatively quick profit
Arbitrage is superior to other trading strategies in terms of how quickly profits can be accumulated. Profits are made as soon as the transactions have gone through.
Short term opportunity
Assets provide a range of arbitrage opportunities in countries like South Africa where exchange controls increase the likelihood of price discrepancies between overseas and local exchanges.
Volatility is great for arbitrage. The more that prices change, the more likely it is that markets will show inconsistent price rates.
Risks and how to avoid them
We limit risk to our clients by not taking an open trading position with clients funds.
There are a number of South African regulations we need to adhere to. Changes in regulation could affect a number of the existing arbitrage opportunities. FiveWest is one of the few FinTech companies with FSP approval.
While it is fairly easy to wrap your head around and try calculate potential profits, fees could limit your arbitrage profitability. FiveWest charges the lowest spreads in the market.
We limit the amount of time client’s funds sit in exchange wallets which drastically reduces the risk of being hacked. We also take out insurance against our arbitrage trading book.