Categories: CryptoNews

Korean Bitcoin Exchanges Present Excellent Arbitrage Opportunities

Arbitrage opportunities are not difficult to find in the world of Bitcoin and cryptocurrency right now. Korean Bitcoin exchanges are showing a rather large price discrepancy compared to the rest of the world. But taking advantage of this US$125 arbitrage gap is not as straightforward as people may think. Plus, the lower volume across Korean exchanges would make it rather difficult to take full advantage of such an opportunity.

Korbit Is An Arbitrage Opportunity Waiting To Happen

It has to be said, the current Bitcoin price on the Korean Korbit exchange is quite appealing for traders. With the value per BTC over US$125 higher compared to the rest of the world, this is a golden opportunity for people to take advantage of. However, the allure of making a lot of money quickly comes with caveats as well.

Setting up an account on the exchange is not as easy as entering your regular address, and they do perform thorough identity checks. Right now, Korbit has the Bitcoin price at US$1,140, which is well above the global market average of US$1,022. Although it is not uncommon to see specific regions display higher Bitcoin prices, such an arbitrage gap is rather unheard of.

In fact, the Korean price is also much higher than the “standard” premium price range found across Chinese exchanges. On paper, it would make perfect sense to buy cheaper Bitcoins in the US and sell them on the Korean exchanges right now. As a result, this would slowly drive up the USD price, while bringing the Korean price down a bit due to increasing liquidity. The reality is however, that process is far from simple.



Related Post

For starters, the local law requires users to have a utility bill linked to a Korean address. Additionally, Korbit will require the ID card number, a bank name, and the account number you plan to use. It is the residency proof of ID that is most difficult to obtain. This also prevents foreigners in Korea from setting up an account and take full advantage of the arbitrage opportunities.

But the arbitrage opportunity is only one part of the bigger story. It is unclear why this gap exists in the first place, although it seems safe to assume this is due to lower market liquidity. Speculation hints at certain wealthy individuals buying up Bitcoin whenever they can, driving the average price higher as a result. These rumors are only speculation for now, though, and should be taken with a grain of salt.

It is clear the whole world is keeping a close eye on the Bitcoin market, and new

arbitrage opportunities are on the horizon. Unfortunately, one cannot take advantage of all of them in quick succession, which may be a good thing as well. Things are looking bright for Bitcoin as we venture into 2017, but it remains unclear if this trend will continue.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Best Altcoins to Invest in Today: Qubetics Sets the Stage for Blockchain’s Future as Bitcoin Hits $108K and Litecoin Soars

The cryptocurrency world has always been a hotbed of innovation, attracting both seasoned investors and…

6 hours ago

Dogecoin Millionaire Predicts This Undervalued Altcoin Could Match DOGE’s 2021 Gains

Dogecoin's 2021 rally was a historic one, turning ordinary investors into overnight millionaires. This magnificent…

7 hours ago

Qubetics Presale Skyrockets to $7.5M as XRP and Arbitrum Lead Best Altcoins for Exponential Returns

The crypto market is always evolving, with big names like Bitcoin and Ethereum leading the…

7 hours ago

Over 300K Users Actively Mine Crypto On BlockDAG’s X1 Miner App While BNB Bulls Eye $3K; What’s XRP’s Price Target?

The crypto market is ablaze with excitement as altcoins like XRP and BNB make major…

8 hours ago

Best Crypto Presale To Buy Now: Rollblock Delivers For Holders With New License, Record Sign Ups and 7000+ Games

Rollblock is quickly becoming the best crypto presale to buy, delivering unmatched value for its…

11 hours ago

Polkadot And Uniswap Gearing For Post-Christmas Jump As Rollblock Raises $7.4 Million in Presale

While Rollblock's continues its crypto presale, with its value increasing regularly, Polkadot (DOT) and Uniswap…

12 hours ago