Start Earning with Crypto Arbitrage in South Africa

Crypto Arbitrage is the simultaneous buying and selling of crypto assets to earn a profit.

This investment opportunity exists because crypto asset prices are higher in South Africa compared to overseas due to exchange controls. One can take advantage of the Arbitrage opportunity by buying crypto assets abroad and selling them in South Africa at a profit.

Crypto Arbitrage is regarded as a low-risk trading strategy as there is no holding period for an open position. Unlike traditional investments, Crypto Arbitrage does not rely on predicting price movement but instead capitalises on price differences across markets. While market risks typically exist between buying and selling, FiveWest eliminates this risk by executing both trades simultaneously.

FiveWest achieves this by locking in the sell rate of the crypto assets at the exact moment of purchase. This ensures clients are not exposed to market fluctuations and allows for predictable returns. Additionally, clients can set a minimum targeted return and FiveWest will only execute a trade if this threshold is met or exceeded.

Every calendar year, each South African resident is granted a R1 million SDA (Single Discretionary Allowance) and R10 million AIT (Approved International Transfer) to send funds offshore. These two allowances combined form your Foreign Investment Allowance which, in total, enables you to send up to R11 million abroad in a calendar year. These allowances are reset on 1 January each year, irrespective of how much was utilised in the previous year.

When investing in Crypto Arbitrage, a portion of your Foreign Investment Allowance is used each time your funds are sent abroad to purchase crypto assets overseas. Your R1 million SDA can be readily used without any additional paperwork. In addition to utilising your SDA, FiveWest is able to (at no extra cost) assist with unlocking your R10 million AIT.

This process requires the client to provide us with their SARS E-Filling details in order to submit an application to SARS which FiveWest will facilitate throughout.

In order to utilise the Crypto Arbitrage service, you must be a South African resident over the age of 18 and investment a minimum of R100 000.00.

The timeframe depends on whether you utilise your SDA or FIA/AIT and the amount you have invested. For clients utilising their SDA, the process typically takes around three weeks. This estimate is influenced by two key factors: the amount of funds used per trade and the arbitrage spread which fluctuates in real time.

Profit generated from Crypto Arbitrage trading falls under Income Tax. These earnings should therefore be disclosed in your annual income tax returns and filed as part of your provisional tax returns.

The client will be charged a SWIFT fee of R500.00 and a withdrawal fee of R50.00, which is subject to change.

The investment funds should be your own. You can however, loan funds from a bank or utilise donated funds from a spouse.