Which cryptos or financial instruments are traded?
We have the flexibility to utilise stablecoins and cryptocurrencies based on the premium they offer when we make trading decisions. In the past, we have typically preferred stablecoins due to their higher liquidity and lower risk. However, there are instances where we can achieve greater profits by utilizing cryptocurrencies like Bitcoin. Importantly, our clients are not exposed to any volatility or price fluctuations in the crypto markets.
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Will the regulation of cryptos impact the premium?
As of 1 June 2023, cryptos are regulated by the FSCA. Anyone doing arbitrage must be an authorized FSP with a “Cat II” FSCA license to trade on a discretionary basis and execute FX and arbitrage simultaneously. Regulation will reduce the number of ...
What is required in order to do the crypto arbitrage?
To do the crypto arbitrage, You will need to: Have a South African ID card or book Have a South African tax number Be tax compliant in South Africa Have a minimum of R250,000 for your trading capital. These funds must be your own and cannot be loaned ...
What are the risks associated with crypto arbitrage trading?
The counterparty risk we face primarily lies in trusting that we have chosen the best service providers across the entire ecosystem. We have mitigated this risk by having an FX intermediary within our organization and holding the FSCA Cat II ...
What is cryptocurrency arbitrage?
Arbitrage is a process that involves buying and selling securities, currency, or commodities in different markets simultaneously to profit from differences in prices for the same asset. These price differences occur due to changes in supply and ...
Who is Currency Hub?
Black Onyx Currency Hub (Pty) Ltd, trading as CURRENCY HUB, is a consultancy enabling qualified investors to trade in cryptocurrencies. CURRENCY HUB is a regulated asset manager, an authorized financial services provider (Cat 1 & 11 & CASP), licensed ...