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Practic

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Nov 29, 2022
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Uncertainty and instabilities in the global economy have increased volatility of crypto and fiat prices. High volatility means high risks and this creates some problems for traditional ways to make money in crypto and fiat markets. Luckily, there are some non-traditional methods to make money in highly volatile markets. In this post, we consider one of such methods, which is also risk-free and has no big upfront costs.

Friendly arbitrage (see [1-4]) is a game played with friends and relatives. In this post, we consider how to extend this method to wider audiences and increase profitability of the method. Anyone can start a side hustle or micro-business based on this method, without significant costs.

Friendly super arbitrage (FSA) is friendly arbitrage extended on multiple pairs of people with opposite views on outcomes of some events, for example crypto prices movements. Instead of playing with friends and relatives, the organizer plays with wider audiences available online and offline (social networks, users groups, local clubs, etc.). For the reason that do exist two groups of people with opposing views on cryptos: crypto maxi (“bulls”) and crypto skeptics (“bears”), FSA is well suited to be played with these people.

There are two variants of FSA. In the first variant, the organizer offers small bets and rewards, without prepayments by players. For the reason that all bets are small, the risk of defaults on payments is low. If there is a default by some player then this player is not allowed to play in other games, which is not in interest of this player, who wants to play and win rewards. In the second variant, the organizer collects bets before the event and makes payments to players after the event happen, based on an outcome of this event. The second variant has no risks and big upfront costs. To inform players about available opportunities the organizer can use e-mail, social networks, or setup a simple website for free (see, for example [5]).

There are about 23 thousands of crypto currencies (see [6]), which offer a big set of choices to players of the game.

To estimate a risk free average monthly income (AMI) from FSA the following formula can be used.

AMI=NP*AIP*NPM

where, NP is a number of pairs of players with opposite views on an outcome of the game;

AIP is an average risk free income per a pair of players per game;

NPM is a number of plays per month.


Let us consider several examples.


Example 1.

John collected some free nano from free nano dropping websites and decided to use available funds to attract players from social networks to play friendly arbitrage. He invited crypto maxi and crypto skeptics to play the game. 200 persons agreed to play weekly. John created a single page website on his Google drive (see [5]) to place offers. On average, John makes $5 per offer per pair of players with opposite views, which results in $5*100*4=$2,000 per month in risk free income.


Example 2.

Julia is a fundraiser for the local children’s hospital. As economy weakened and charitable contributions decreased, Julia decided to implement a non-standard approach for fundraising. She offered people to play friendly arbitrage and have a chance to win rewards on correct predictions of bitcoin price movements. 100 persons agreed to play weekly. On average, Julia makes $50 per offer per pair of players with opposite views, which results in $50*50*4=$10,000 raised risk free for the hospital per month or $120,000 per year.


P.S. If your local laws do not allow to make private deals based on movements of crypto prices then you should consult with local lawyers on how to structure the private deals to place the game within the legal boundaries of your local laws.



References:

[1] A simple way to make money by means of friendly arbitrage

[2] A simple procedure to practice friendly arbitrage.

[3] A simple way to introduce cashbacks/rebates into friendly arbitrage

[4] A simple way to decipher the King Solomon’s proverb

[5] A simple way to host a static web site on Google Drive or DropBox

[6] Different Types of Cryptocurrencies
 
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