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šŖARBITRAGE mini-series: What are the Risks?
Unlock the secrets of Arbitrage: Turning price gaps into profit!
MoneyMoves
January 24, 2025
In this mini-series, weāre tackling all things arbitrage! By the end of this week, youāll know exactly how to take advantage of arbitrage to build your wealth in 2025. Ready to learn? Letās go!
Arbitrage: What are the Risks? < weāre here!
Arbitrage: How much do I need?
Does SARS approve Arbitrage?
The Three Risk Factors:
1) The Arbitrage Trade
Arbitrage is by definition is zero-risk strategy (provided that itās executed correctly). In scenarios where margins are too tight to justify the trade, the funds will remain idle in a bank account, at least earning a safe interest rate.
2) Counterparty Risk: Arbitrage Facilitators
Crypto arbitrage companies play a critical role in executing trades. However, if they lack transparency, mismanage operations, or engage in unethical practices, your investment could be jeopardized.
To mitigate this risk, itās essential to conduct due diligence and choose reputable companies with proven track records. If youāre unsure about where to start, Iām happy to help. Please reach out to me to discuss these options via the meeting link below.
3) Counterparty Risk: Crypto Exchanges
Crypto exchanges are used for buying and selling cryptocurrencies to capture the price discrepancies. Examples of potential issues include:
Hacking incidents compromising funds.
Freezing of withdrawals due to regulatory or technical challenges.
Mismanagement of internal systems leading to loss of funds.
Although the risk of mishandling funds or operational failures is relatively low for established exchanges, itās not zero.
Keen to Arbitrage?
Disclaimer: This is not financial advice.
Who Are We?š
 The Knowledge Chest | Paul holds an Honours degree in Financial Analysis from Stellenbosch University. With a career spanning investing, accounting, and education, Paul is committed to becoming the best financial planner in South Africa. Despite his many accolades, Paul insists that his greatest achievement is that he is dating a yoga teacher. |
 The Anchor | Ingrid holds a BA Honours in Journalism from Stellenbosch University. She is a self-diagnosed workaholic, excelling in various roles such as marketing, publicity, social media, and strategic partnerships. Ingrid's commitment to promoting wellness and balance extends beyond her professional endeavours, as she is also an avid yoga teacher. |
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