Understanding Arbitrage
Cryptocurrency Arbitrage Trading, or "Crypto" Arbitrage Trading, refers to the practice of purchasing a cryptocurrency (often a stable coin) on an overseas exchange and immediately selling it on a South African exchange for a profit. This transaction is facilitated by the fact that cryptocurrencies can trade at a premium of 1 - 3% in South Africa compared to overseas exchanges.
When engaging in Crypto Arbitrage Trading, your investment is not in the cryptocurrency itself but in the margin between different markets. Therefore, you never actually own the cryptocurrency as part of this unique investment strategy.
The South African Revenue Service (SARS) permits individuals to trade up to a total allowance of R11 million in a calendar year for Crypto Arbitrage Trading. This consists of your Single Discretionary Allowance (SDA of R1 million) and your Foreign Investment Allowance (FIA of R10 million).
If you're a South African tax resident and over the age of 18, this investment opportunity is available to you.
At Fynbos, we're here to assist and manage this trading and investment for you. Through our partnerships with various Exchanges, OTC desks, and Foreign Exchange intermediaries, we strive to make the process as seamless and efficient as possible.
A typical trading cycle with us takes a total of 24 hours. (For a detailed overview, please see the trading cycle information included below.)
We understand the complexities of the financial landscape, and our team is committed to guiding you through every step of the way. Feel free to reach out to learn more about how Crypto Arbitrage Trading can fit into your investment portfolio.