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Press Release: Tuesday, June 1 2021, 13:30 CAT | Source: Coindirect

Global cryptocurrency platform Coindirect today announced the launch of its automated Bitcoin arbitrage service. It’s one of the first fully hedged systems that executes the trades in real-time, with no exposure to foreign exchange price risk or cryptocurrency price risk, providing investors a platform to enter the Bitcoin market to grow their funds while protecting their initial capital.

“Cryptocurrency investment has very quickly moved from a fringe activity into the mainstream,” says Coindirect head of trading Chris Harmse. “While some have seen significant returns just from buying Bitcoin and selling at the right time, arbitrage provides a way to profit instantly, regardless of the price of Bitcoin at any given point in time.”

South African Rand (ZAR) fluctuation can significantly affect profit margins, however. Coindirect’s platform protects investors against this as it’s one of the only providers in the market that executes the trades in real-time, where forex transactions typically take about a  day. What this means, in effect, is that investors will always lock in their arbitrage profits regardless of external events.

Another advantage of Coindirect’s arbitrage service is that it closely monitors the Bitcoin arbitrage premium and investors can choose their minimum net profit range. “We aim to only execute trades when a profitable opportunity exists,” says Harmse. “Your ZAR funds will remain in your account earning interest until the opportunity is favorable.”

The Coindirect trading head also points to the exchange’s security provisions as something that sets it apart from the arbitrage service providers. “Because all trades are executed directly through our Coindirect platform, security risks are minimized,” he says. “We have access to deep liquidity pools and partner with institutional grade custodians.”

Using the platform, investors historically have earned healthy net profit on each arbitrage trade, with zero losing trades for any clients. “We’re incredibly proud of the product we’ve built in our arbitrage service,” says Harmse. “Ultimately, we set out to create something that would provide tangible benefits to our customers and give them the best possible chance at maximizing their profits and we believe that it would be difficult for anyone else to beat what we’ve done.”

Registering for the arbitrage service is simple. Investors firstly decide how much of their single discretionary allowance (SDA) or foreign investment allowance (FIA) they want to invest. From there, they register for the service on and upload the relevant documents. Coindirect’s licensed foreign exchange broking partners will assist with opening a foreign currency account (FCA) with an authorized dealer bank. Finally, Coindirect will map the account to the investor so it’s ready for arbitrage trades.

All trades on the Coindirect arbitrage service are automatically executed. Once completed, the initial capital plus net profits will be deposited into the investor’s account.

*Past performances are not necessarily indicative of future performances. The crypto arbitrage premium constantly fluctuates as a result of the underlying FX and Bitcoin/Cryptocurrency price changes.

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This article is a Press Release received from Coindirect. Global Crypto did not receive any form of compensation for its publication, and as this material is deemed newsworthy for the Southern African blockchain industry, it was thus published accordingly.

Kratika is Global Crypto's Admin Assistant. She has extensive experience working for top tech firms from around the world, and has a wealth of knowledge in the FinTech industry.