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Globalisation has taken the world by storm over the past few years. This globalisation process will speed up year on year. With this process going on in the background the world markets and exchanges are becoming more accessible from the luxury of your home. Globalisation has created various opportunities through accessibility. One of these opportunities is called arbitrage.
We offer a personalised service to be able to get you into the world of arbitrage.

Need to know

Cryptocurrency

Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments.

Single discretionary allowance (SDA)

The SDA allows South African residents aged 18 years and older to make international payments and investments of up to R1 million per calendar year without any supporting documents.

Foreign Investment allowance (FIA)

In addition to your single discretionary allowance, every South African resident over the age of 18 years is also entitled to a foreign investment allowance (FIA) of up to R10 million per calendar year.

The Concept

By Using the arbitrage concept explained above we realise profits through mismatched pricing between our local South African bitcoin price and the overseas Bitcoin Price.

The Opportunity

By using your R1 million SDA (Single discretionary Allowance) and your R10 million FIA (Foreign Investment Allowance) you profit from Bitcoin’s price mismatches around the world. Over the past 4 years, BTC/ZAR markets have traded at an average premium of 4.6% to BTC/USD markets. This rate varies day by day and there is no garuanteed rate. By Fixing the rate on both sides the risk is mitigated.

The Offering

Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset’s listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms.

The Process

The Investor

Watches the market in order to capitalise on price fluctuations.

Market A

The price has fallen below the average rate, now is a prime time to buy.

Market B

Prices have risen beyond the average rate, now is a prime time to sell and make a profit.

The Example:

Meet Joe

Joe has asked us to activate the arbitrage service for him. He wants to use his Single Discretionary allowance (SDA) of R1 million. The nett arbitrage rate is 2% on the day after costs and fees. We use a R 100 000 for the transaction. We will be using part of Joe’s R1 million Rand Single Discretionary Allowance (SDA). This is available to every South African aged 18 years and older automatically and we don’t need clearance for that. After this transaction Joe will have R 900 000 left of his yearly allowance. Thus, Joe would make R 2 000 on the specific arbitrage trade. It’s as simple as that.

Single discretionary allowance (SDA)

If we used Joe’s full SDA we would execute 10 trades totalling R 1 million and assuming all 10 trades had the 2% nett return Joe would have made R 20 000 profit. If we do two trades per week, he would have this return in 5 weeks. There is no set time due to the varying arbitrage rate every day but the above example gives you a good indication of the concept.

Foreign Investment allowance (FIA)

If Joe were to further use his R10 million Foreign Investment Allowance (FIA) and we used R 200 000 per trade, we would execute 50 trades over the calendar year taking around six and a half months to use up his full allowance. Assuming average 2% nett return he would make R 200 000 over the calendar year. You are allowed to use your tax allowances once a year and then have to apply again in the new year.

Contact Us:

Drop us an email with your details and we will get back to you.

admin@altcapital.co.za

Or for more information download the pdf below.

THE OFFERING
Offering you an arbitrage service to realise profits through mismatched cryptocurrency pricing between Local and Offshore markets.
Alternative Capital Investments is not a registered Financial Services Provider and does not offer any financial advice. We are not regulated by the FSB or FSCA.
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