Experts like Ki Young Ju, founder of CryptoQuant, celebrate the fact that Korean retailers are back.
In a recently published report on CoinDesk, one of the most curious ways to make profits with crypto trading is reviewed. This is a form of Bitcoin arbitrage called Kimchi Premium and is specifically capitalized on South Korean trading exchanges. Although this form of trading is now more complex, it still offers profitability.
This type of arbitration with the largest cryptocurrency was made fashionable by the former CEO of FTX, Sam Bankman-Fried. It brought profits of millions of dollars to the businessman, now in prison for various charges. The dynamics of this are simple and consist of buying BTC on global exchanges and selling them on South Korean exchanges.
As explained by the aforementioned media, this practice allows notable profits thanks to the price differential of the cryptocurrency with the US dollar and Won. They add that at the time of writing this bonus offers an average profit rate of 10%. This is an advantageous and risk-free way to earn great returns from Bitcoin trading.
Although the practice still represents notable gains, carrying it out is much more complex than at other times. The latter is due to the trade regulatory standards of the authorities of the Asian country.
Bitcoin Arbitrage with the South Korean Won
This form of Bitcoin arbitrage is at two-year highs with 10% profitability. Basically, the price of each BTC in South Korea is ₩97 million won, which is equivalent to the current rate of about $72,820. Meanwhile, the price of BTC is $67,032 per coin.
These appreciable differences allow the exchange to be favorable for global investors. The favorable situation of this type of trade is found in the high demand for Bitcoin within the South Korean market. The latter, added to the limited supply of BTC, leads to the price within the country’s national borders maintaining a strong rate of rise.
Such a form of exchange brings two elements to light. The first is that demand for BTC is reaching historically high levels. The second is a possible market inefficiency, which could degenerate into greater volatility. In any case, this form remains highly profitable for the moment, encountering the only obstacle in government restrictions.
With this in perspective, it can be said that Bitcoin arbitrage is still one of the least risky ways to make profits. However, it should not be lost sight of that all forms of trading with cryptocurrencies have an implicit risk.
Arkham Intelligence Reveals How Much Bitcoin Tesla and SpaceX Hold
The on-chain analysis company, Arkham Intelligence, makes public the cryptocurrency holdings of large firms. On this occasion, it revealed the exact amount of Bitcoin owned by the companies Tesla and SpaceX, both owned by magnate Elon Musk.
As is known, Arkham expressed enthusiasm for BTC in 2021, when he announced large purchases for his companies’ reserves. In addition to the acquisition of the cryptocurrency, the electric car firm Tesla, began receiving payments in BTC for its vehicles. Such a situation caused a great push for the price of the reigning cryptocurrency at that time.
Subsequently, it was learned that the company distanced itself from the digital currency and operated several sales. This was added to the decision to stop the receipt of digital currencies in exchange for cars powered by electricity. In any case, Arkham managed to locate in detail the amounts owned by this and Musk’s other star company, SpaceX.
By Leonardo Perez
