The crypto arbitrage strategy explained – CURRENCY HUB

*This content is brought to you by CURRENCY HUB

By David Farelo* 

Click on the video link to watch the short interview with David Farelo, Head of Operations and Trading @ CURRENCY HUB:

Cryptocurrency-arbitrage made it into the mainstream in 2020 and affords South African investors a unique opportunity to accumulate quick profits of around R3000 – R6000 per day from cryptocurrencies with ultra-low-risk returns. That said, there are several operators out there and the selection of your service provider should be a thorough one for obvious reasons. Ask yourself; do they have a long track record in crypto-arbitrage, do they have any asset management background, are they regulated in any way and is their trading strategy legitimized with a legal opinion and consideration of the regulator and the Currency and Exchanges Act?

Let me introduce you to our firm CURRENCY HUB and a special we are running for BizNews readers offering a 50% fee discount for the first R1m traded (SDA).

South African citizens are entitled to a R11m offshore allowance, allowed to spend a R1m travel allowance and send R10m offshore for investing each year with a tax clearance certificate. Very few use their full tax allowance because let’s face it, who has R10m lying around each year? The truth of the matter is, you are missing out on an earnings potential for not trading R11m each year and here’s how 1000’s of investors have been able to take advantage of this for over 4 years, with today’s premium averaging 3% gross and netting a profit of around R150,000 in a few months, from an initial investment of R250,000.

See the table here and below:

CURRENCY HUB is a specialist in crypto-arbitrage, with over 4000 trades spanning more than 4 years with ZERO losses. The founders have deep experience in asset management and compliance, having developed a sophisticated active-trading solution that generates ultra-low risk returns, with ZERO exposure to Bitcoin. The regulator and FOREX counterparties who serve as their Authorised Dealers are familiar with the process, which is supported with a legal opinion, so rest assured the crypto arbitrage performed by CURRENCY HUB is 100% legal. The premium however is compressing and will likely not be as high for much longer.

Through various institutional relationships spanning cryptocurrency exchanges, FOREX intermediaries and over the counter (OTC) desks, CURRENCY HUB delivers low transactional fees, premium support, deep cryptocurrency liquidity and best price execution. Risk management is the highest priority and the greatest threat to the arbitrage process is counterparty risk. As such the trading is actively managed through a best-of-breed services providers with limited time on any of the exchanges, repatriating the clients’ funds and profits into their private bank account each day. With access to a Bitcoin float, credit lines for crypto-pricing and set FOREX rates, CURRENCY HUB eliminates all those immediate risks while the client is never exposed to Bitcoin and its fluctuations.

It works like this … read on, or watch this video:

Having completed their FICA, proof and source of funds and been issued a tax clearance certificate from SARS, which is a service managed through CURRENCY HUB, the investor deposits R250,000 into a foreign exchange bank account (opened in the individuals’ name) with one of our Authorised Dealers. This is the only (and minimum) amount required for the full trading cycle and is optimal as per all the transactional costs along the way. Importantly, CURRENCY HUB has negotiated the best institutional rates and all the service providers commissions have been used to discount the overall costs to earn their clients the very best premium.

CURRENCY HUB then trades (on the clients’ behalf) up to 44 tranches with the R250,000 trading capital over a few months to get to the maximum offshore allowance of R11m. This aims to deliver a variable total return determined by the premium and exchange rate which is currently around 3% after transactional costs. After each of the 44 trades, the profits are realised in ZAR, secure in the investors’ private bank account and upon completing the trading cycle, the R250,000 trading capital and profits are returned immediately. Done!

All the while the investor has access to a live spreadsheet to watch the trade and returns for themselves, with their profits securely stored with the Authorised Dealer. At the very end of the cycle, the clients are issued a detailed statement clearly showing the premium achieved on their behalf for all 44 trades and their overall profit. This is then shared with their tax practitioners as a clean investment statement.

There are certain criteria that a South African citizen would need to fulfil in order to register with CURRENCY HUB to facilitate the cryptocurrency arbitrage on their behalf, noting we treat each client as a qualified investor who would need a minimum of R250,000 capital. Please visit CURRENCY HUB for more information on their crypto-arbitrage strategy.

Disclaimer: This article does not constitute financial advice. While the author and his firms are regulated by the FSCA and the SARB, cryptocurrencies are not a regulated investment. Please refer to CURRENCY HUB a juristic representative of BLACK ONYX (FSP 47701 and 50850) for more information.

  • David Farelo is the Head of Operations & Trading @ CURRENCY HUB