Arbitrage Opportunity in 2019 — My Real Experience
It’s hard to do a normal arbitrage in 2019. Here’s our own experience with arbitrage in 2019 and how you can start the arbitrage from now.
Contact me in my private group if you’re interested in the arbitrage: https://t.me/joinchat/EhYO9BesNrJKw0jcvEJEzwThe Arbitrage You Might Have Already Known…
In 2017, the bitcoin price in the Korean market was higher than the market out of Korean. At that period, traders could easily earn 10~20% just by buying Bitcoin outside of Korean exchange and then sell the Bitcoin in the Korean exchange.
This is the simplest arbitrage that you might know and have already profit from it before. It’s a straight-forward technique.
Unfortunately, there’s not so much opportunity for this kind of arbitrage under the current market condition.
Opportunity for Arbitrage in 2019
I want to introduce “Cash-and-Carry-Arbitrage.” It’s not a new technique, but we found the result is really convincing!
In our experience, this is a steady and low-risk arbitrage technique. We have tried ourselves in the last 80+ weeks, and the performance for Bitcoin is around 10% p.a. This is 5x compared to crypto.com (a well-known investment platform) and 3x compared to Binance Lending.
How Does Cash-and-Carry-Arbitrage work?
You could always observe the price difference between the spot price and the futures price. So the concept is to arbitrage from these differences.
Cash-and-carry-arbitrage is a market-neutral strategy combining the purchase of a long position in an asset such as Bitcoin, and the sale (short) of a position in a futures contract on that same underlying asset.
Example of Cash-and-Carry-Arbitrage
Consider the following example of cash-and-carry-arbitrage. Assume an asset currently trades at $100, while the one-month futures contract is priced at $104. In addition, monthly carrying costs such as storage, insurance, and financing costs for this asset amount to $3. In this case, the trader or arbitrageur would buy the asset (or open a long position in it) at $100, and simultaneously sell the one-month futures contract (i.e. initiate a short position in it) at $104. The trader would then hold or carry the asset until the expiration date of the futures contract and deliver the asset against the contract, thereby ensuring an arbitrage or riskless profit of $1.
How Can I Start My Cash-and-Carry-Arbitrage?
Traders need to have a better algorithm for starting their own cash-and-carry-arbitrage, so this would be considered as a high-level arbitrage, which it’s hard to do it manually.
Pionex PiHODL offers Bitcoin (BTC) and Tether (USDT) products with 10%+ Annualized Profit. The algorithm behind PiHODL is similar to cash-and-carry-arbitrage but with a more advance algorithm and risk management methodology. It has an extraordinary performance in the last 80 weeks: 10%+ p.a. for Bitcoin and a very low drawdown (0% drawdown from the beginning of this year until now)
Pionex is invested and incubated by BitUniverse.
According to the historical data of PiHODL, if we invest 10 BTC to PiHODL at the beginning of this year, we’ll make 0.91 BTC profit now which is 12.36% p.a.
If you’re interested in using Cash-and-Carry-Arbitrage to increase your Bitcoin holding, PiHODL might be the best choice you can get all over the market.
Check it out on Pionex and increase your Bitcoin from today.
👉 https://www.pionex.com/en-US/balance/fund
👉 Pionex Official Telegram Group: https://t.me/pionexen* Pionex is invested and incubated by the BitUniverse team.
