Ein Leitfaden zum Bitcoin-Arbitragehandel in Südafrika

What is arbitrage trading in crypto?

Arbitrage trading in cryptocurrency is when a trader buys a cryptocurrency for a cheap price from one place and then sells it for a profit on another exchange to take advantage of the price differences. Bitcoin arbitrage trading is one of the easiest ways to make a profit while trading Bitcoin with minimal risks.

Is arbitrage trading legal?

Arbitrage trading is legal as long as you trade in countries where Bitcoin is legal. An arbitrage trader simply takes advantage of the price difference between multiple exchanges to make a profit.

How does arbitrage trading work?

Cryptocurrency sells at a premium in developing markets and countries with economic problems such as Zimbabwe and Venezuela, while cryptocurrency sells at a price closer to its actual market value in developed nations. Traders with access to foreign markets can take advantage of the price difference and demand by buying Bitcoin for a low price in developed nations and selling for a higher price in developing countries or countries without a developed crypto ecosystem.

How to start Bitcoin arbitrage trading

If you want to buy bitcoin for a low price and sell it for a higher price on another exchange. The first thing you need to do is to open an account on all the exchanges that support your payment method. After signing up on the different exchanges, you need to buy bitcoin on the exchange with the cheapest price and sell it on the exchange with the most expensive price.

What are the fees in Bitcoin arbitrage trading?

In addition to the Bitcoin price, you also need to consider the trading and withdrawal fees of different exchanges. To make a profit, your buy price including transaction fees must be less than your sell price including transaction fees . Transaction fees include fees for each trade and withdrawal fees for sending crypto to another exchange.

Bitcoin Arbitrage Trading in South Africa

In South Africa, you can do bitcoin arbitrage by buying on Coindirect.com and selling on Luno.com or localbitcoins.com The trick is to buy with your credit/debit card on Coindirect, where credit card purchases are cheaper than other payment methods, and sell on Luno, where bitcoin is sold at the local markup. At the time of writing, buying bitcoin on Coindirect with a credit card would cost R176,077 versus R178,900 on Luno. The more volatile the markets are, the bigger this price difference becomes, as local exchanges take a while to adjust to the more competitive global bitcoin prices.

How to buy Bitcoin on Coindirect with a credit card (or VISA debit card)

1. Sign up for a free Coindirect account (just log in if you already have an account).
2. Find your way to your Bitcoin wallet.
3. Click “Buy” and then select “New VISA Card (EUR)” from the drop-down menu.
4. Enter the EUR value of the BTC you want to buy (more than the minimum limit) or the BTC amount you want to buy and then click ‘Preview Buy’.
5. You will receive an offer, press ‘Confirm’ before the timer runs out (counts down from 55 seconds).
6. Enter your credit card details and pay.
7. You will be redirected to a page to confirm your transaction.
8. Finally, you will be redirected back to your Coindirect wallet once the payment is successful.

How to sell Bitcoin on Luno

1. Register for a Luno account and verify your identity.
2. Send Bitcoin from your Coindirect Bitcoin wallet to your Luno Bitcoin wallet.
3. Either click “Sell” in your Luno Wallet and get an offer to see if you get more money than you bought on Coindirect.com, or

Create a sell order on the Luno exchange that is larger than the amount you bought for on Coindirect (including the transaction and withdrawal fee). Once you have sold the Bitcoin at a profit on the more expensive exchange. You will need to withdraw the funds to your bank account (credit card) and repeat the process to continue buying low and selling high whenever there is a price difference. The more volatile the Bitcoin price, the more opportunities there are to make a larger profit. The main risk factors to consider:

• It is best to act quickly to minimize the risk of market movements, as the price difference may disappear before you make any trades due to the volatility of cryptocurrencies .
• When there are many transactions, the blockchain can become overloaded, so it may take some time to transfer your Bitcoin from one exchange wallet to another.
• Always make sure you have a balance on your credit card to take advantage of the price difference when there are sudden price changes. The last thing you want is to not have funds to buy from the cheaper exchange when the opportunity arises.