t’s no secret that 2022 wasn’t necessarily the best for anyone in the fledgling crypto space. After multiple platform collapses and with pressure mounting from the traditional economy, cryptocurrency prices cratered, with investors suffering losses.
Nevertheless, crypto is far from dead. In fact, the bear market of 2022 is giving more investors renewed hope of a coming bull cycle, and many are looking to prepare themselves for what is coming. Just as well, investors were still able to optimize returns in the market via arbitrage, a smart yet unrealized way to earn passive income using cryptocurrencies.
We conducted a session with Mr. Joseph Emmett, the CEO of Mosdex.com who discussed the current crypto market scenario and how Mosdex stands out as a potential arbitrage staking platform for offering recurring passive income.
Arbitrage – Beneficial for Everyone
The concept of arbitrage is simple: you look for the difference in the price of a certain asset, e.g., Bitcoin on different exchanges and capitalize on that to your advantage.
For example, the price of BTC on a certain exchange can be $20,850, while the same asset could trade at $20,790 on a separate exchange. As seen, there is a difference of $60, which can be capitalized if trades are performed quickly. This activity of buying low on one exchange and selling high on the other is called arbitrage.
Of course, it is worth noting that the price of cryptocurrencies on exchanges fluctuates based on their levels of demand and supply. So, while exchanges do their bets to track market prices across other platforms, their demand and supply levels will be the ones to essentially determine where coins trade at the end of the day.
Over the years, there have been many traders who have mastered the act of moving assets on exchanges quickly, thus taking advantage of the arbitrage opportunities on these platforms. And as the crypto market has evolved, so have the arbitrage opportunities available to investors.
Then, there is cryptocurrency staking – the act of locking up coins on a specific exchange in order to support it. Staking was made popular thanks to the evolution of blockchains, which used to validate transactions using the mining consensus algorithm. With staking, investors can simply lock their coins up, and network validators continue to verify transactions on the network.
Combine these two concepts together, and you have arbitrage staking – a way for cryptocurrency investors to lock their assets on a platform, and these tokens get used for trading by a bot or a trading engine. In return, investors earn returns that are paid out periodically to crypto stakers – and still get returns from their trading activity.
Arbitrage Staking, an innovative way to stake and earn
Arbitrage-based staking is great because it allows community members to participate without actively doing anything while also providing a launchpad for them to enjoy significant gains.
With investors looking for new passive income opportunities, MOSDEX, a highly efficient arbitrage platform, presents its automated arbitrage staking that combines AI and Defi to bring the best for its users. Joseph Emmet, the chief executive at MOSDEX, recently sat down for an interview where he spoke about his company and the objective they are trying to reach.
What is the issue that you hope to resolve?
Trading, be it in securities, currencies, or digital assets, has always been a time-consuming and effort-driven process as the user is not only required to be aware of the trading complexities and risks but also has to keep themselves updated on a multitude of information that can affect the value of the underlying asset. With so much volatility across markets and new forms of assets introduced every odd day, it becomes difficult, even for experienced traders, to cope and leverage it to their benefit. Arbitration is a method used for decades, where a trader purchases an asset on one exchange and simultaneously sells the same on another, using the difference to their advantage in ideally a low-risk environment. Although this trading method has almost entirely diminished, mainly due to the advanced synchronization of data among various exchanges, it still offers a significant opportunity within the cryptocurrency market.
“We believe that MOSDEX is in a good position to help with these challenges going forward, allowing investors to optimize their profitability.” Said Mr. Emmet.
With trust in seemingly centralized platforms at an all-time low, how have you been able to navigate the market?
“We do understand that the market has uncertainties around centralized platforms, especially exchanges. However, MOSDEX isn’t an exchange or a marketplace. Its parent company is a Finnish-based tech firm that deals in finance, fintech, and trading.
Essentially MOSDEX is a platform that runs by an algorithm. There is no centralized authority that dictates what funds are used for, so investors can trust that their money is safe.” Continued Mr. Emmett.
What are the pitfalls you see in the crypto trading market, and how do you think they can be resolved?
Crypto is still very much in its infancy. And as we all know, this has led to challenges on the regulatory front and a lack of information transfer between crypto exchanges.
We believe that the key to solving these challenges will be to introduce a stronger regulatory regime into the market that will help to lay down laws guiding the operation of cryptocurrencies and players within the space. And as the market continues to mature, the prospects of this happening continue to grow.
In traditional crypto trading, traders are wary of volatility as it can often affect their trades in diverse ways. How does Mosdex tackle volatility?
The crypto market is growing rapidly, with different innovations coming in and projects looking to take the industry to the next level. All of this has led to massive volatility, as investors themselves have different opportunities to profit.
“Of course, volatility is still a part of the crypto market entirely. At MOSDEX, we simply want to provide an avenue for investors to embrace and harness this volatility for their own good.” Said the CEO, Mr. Emmett.
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