What is arbitrage?Cryptocurrency arbitrage is a powerful strategy that allows traders to make profit even during a bear market. Arbitrage is when you buy a token on one exchange and sell it on another exchange at a higher price. Did you know that most cryptocurrencies are more expensive in South Africa than on overseas exchanges? Thus, creating lucrative arbitrage opportunities for South African traders.
Even though one does not have to be a seasoned crypto trader, there are a few things to watch out for:
- Transaction fees
- Transaction speed
- Market volatility
Why arbitrage on the Polygon network?During arbitrage, one has to transfer your tokens from one exchange to another very quickly. For the simple reason that the market may go down and you lose profit. In the same vein, expensive transaction fees can also negatively impact profit. The ideal solution is to arbitrage on a network that allows for fast transaction speed and minimal transaction fees. Polygon is one such a network!
How to arbitrage on the Polygon networkIt is easy to arbitrage on the Polygon network. In a nutshell, simply transfer the xZAR stablecoin to QuickSwap, buy any token that is listed on AltCoinTrader and transfer the token to the exchange to sell at a higher price. Here is a step-by-step guide on how to arbitrage on AltCoinTrader and the Polygon network:
- Create a free AltCoinTrader account, deposit Rands then withdraw xZAR tokens to your MetaMask. You can also buy xZAR on MetaMask.
- Connect your MetaMask wallet to QuickSwap.
- Go to www.xzar.co.za/projects and click on “Polygon” under the “Projects using xZAR” section.
- Click on the QuickSwap.exchange link.
- When a window pops up with a “Token Imported” message, click “Understood”. xZAR tokens will now be imported onto your QuickSwap profile for easy swapping.
- When you want to swap xZAR for Matic tokens for example, select xZAR from the top tab and Matic from the bottom tab. You will thus be swapping from xZAR to Matic.
- Next, transfer your Matic tokens to your AltCoinTrader wallet to sell at a profit. Matic may cost R20 on QuickSwap and R23 on AltCoinTrader. The difference is profit. Take note that arbitrage opportunities may sometimes be the other way around and the price on QuickSwap can be higher than on AltCoinTrader.
- You may also arbitrage with xZAR using the Matic wallet or on AltCoinTrader’s very own DEX, AltSwap. Both boast with extremely low fees and fast transaction speed.