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How to Make Money with Credit Card Arbitrage
To fully appreciate this article, it’s important to understand what arbitrage is. Arbitrage is the practice of taking advantage of the difference in prices of assets within two or more markets. By buying and selling these assets simulataneously, you can profit off the difference in these prices. Arbitrage opportunities can be found anywhere. If you pay attention, you can find various ways to exploit them and make passive income.
You can do an arbitrage with nearly any asset including currencies, securities and commodities. For instance, let’s say Bitcoin is selling for $61,300 on an American exchange and for $61,900 on a South Korean exchange. Do you see the opportunity here? You can simply buy bitcoin on the American exchange, and quickly sell it on the Korean exchange before the price fluke disappears. If you do it fast enough, you can have a $600 profit.
What is Credit Card Arbitrage?
Credit card arbitrage is a way to take advantage of the difference in available interest rates out there. It refers to the process of borrowing money from a credit card with low to zero interest rate and then investing that money elsewhere to generate a higher rate of return. The difference is your profit.
