Bitcoin Forum

Recently, the price of Bitcoin has fluctuated sharply, and arbitrage windows have appeared on many exchanges. The price of Bitcoin on Binance is US$47,000, while on some exchanges in South Korea, the price of Bitcoin is US$51,000. If you buy in Binance and then sell in South Korea, you can make a profit of $4,000. I am considering doing this. I want to hear your opinion. ???

Keep in mind that arbitrage exists on the market for years and some use bots for this.
This means that the prices between the exchanges "equalize" pretty fast and if some exchanges "stand out" with the prices Bitcoin is traded at, there's a good chance that something is fishy there, most probably various difficulties in creating the account or withdrawing from there.

So if it's an exchange you're familiar with, good luck! But if you're not, spend some time, research more on that exchange, maybe play with small amounts of money, get the pulse. Don't just jump in. If it's too good to be true, it's probably not good at all.

The price difference has existed before, especially during the 2017 bull run. At the time, there were people who were also looking for a way to engage in this type of trading, but the problem was that then the condition for registration on one of the crypto exchanges in South Korea was for a person to be a citizen of that country. I’m not sure if anything has changed in that regard, but I don’t think it’s easy to make money this way unless we know someone who lives there and whom we trust.

There were a lot of offers similar to this one from the link, but the key thing is, as always, trust when it comes to large amounts.

Korean Arbitrage - Margin 30~35% now(2018) (https://bitcointalk.org/index.php?topic=2726658.0)

We are already in 2021, it might be a good idea to do arbitrage in 2017, but now you have to compete with bots. So the chances for a average and regular traders are very slim to make profits thru arbitrage. And then you also have to factor that withdrawal fees and KYC procedure you have to undergo. So just be careful as the risk is also very high. It's sounds easy in paper, but it's a hard trading strategy to execute, in my opinion.

That can't be done by the likes of you even if you are living in South Korea, the price is isolated there meaning that you can't buy here lower price and then sell it there, the exchanges habe thought of that so you're not a genius for proposing the idea.

Have you considered the confirmation speed if you made a transfer from one exchange to another? What about deposit/trading fees, requirements to have a verified account, etc?

I share the same belief that doing arbitrage from one exchange to another is quite risky and not worth your time, especially if you're using an exchange with a different target market. Instead of making some profits, you might as well lose your data in the future. Why not arbitrage on a single exchange using the price difference on the trading pairs? Profit might be low, but you should not aim for arbitrage as your main strategy in the first place imo.

I rarely do trading, for me such thing like that is very tiring but it is work. I see many people that claim they can get profit from it. I think it is okay to start it. Maybe you can also try different coin too. In my opinion the price also has correlation with the trading volume in each exchanges. I think some new popular coin have big volume in an exchange site but also still only have small trading volume in other exchange sites.

I don't think that we can't do that, as @Obito have pointed out, they've made a countermeasure against this kind of scenario/situation so there's no possibility that someone can do that, even if you try to bypass it, you can only buy and sell in that location but you can't take it out into your country.

Cryptocurrency is the rule that you will buy at a lower price and sell at a higher price.But there are a lot of things here that if you are new then you are not going to do all this work. There is no excuse for cryptocurrency mistakes. It has been seen that if you want to do all this without knowing and without knowing the price analysis But then you will lose a lot.

We do have to be careful if we want to transfer our assets to small exchanges with the aim of arbitrating because of the high price difference, because it's true what you say fraud often happens here and it's just price manipulation or fake transactions. 
If we find the price difference is high enough we have to research it first, moreover it is a large coin it is impossible for the price difference to be too high between exchanges with one another. Wrong decision, then our assets will be lost.

Taking advantage of arbitrage opportunities aren't always easy as it seems. To facilitate such trades, you have to ensure that you've a standard account on both platforms to be able to take those trades. Also, there's always a catch when an exchange offers crypto assets at a premium. It might look like a golden opportunity to take advantage of - rinse, repeat and accumulate profits but it's a lot more harder. Be sure to have all information available before making moves. I jumped on opportunities like that without adequate research and lost money instead of gaining.

If you do this, the risk will be great. Don’t trade on small exchanges either.
Everyone thinks the same as you, then we will do the same. But we will not do this for safety reasons.

As a rule of thumb whenever there is a big gap between exchanges that remains that way for a long time there is always something wrong. Because if there were indeed a 8-9% difference and there were $4k profit to be made there were hundreds of other active arbitrage traders who would have taken advantage of it and grabbed the profit hence closing the gap.

I‘m curious about why would big gap appear? why would some exchanges set their price lower than the market? who'll take the loss? if they just meant to attract users then how would the developer make up the loss? businessmen are always wily and shrewd so I just couldn't figure it out!
I know some traders bought robot to achieve that process but I don't know whether it worked or not
it is not the same as commodities in stores where the owner can willfully adjust the price. the fact is no one can buy Bitcoin with a discount

As far as I know, such price differences are in most cases caused by high demand and low liquidity in a particular market. If there is not enough of something on the market, and there is a great demand, it is logical that the price will rise. This is not just the case with South Korea, and some markets in Africa and the Middle East have also recorded large price differences at times when the price is rising.

It should not be associated exclusively with Bitcoin, it happens in everyday life - people buy something cheap in country X and then sell it at a much more expensive price in country Y.

just make sure that the accuracy in time will favor you because the sad thing here is that what if you buy at 47k in binance and when you wanted to sell in other exchange suddenly the price back to normal.

and i have seen similar occasion posted here that happens like this when the exchange have bugged and then turn back the traders and asking Him to return back the excess in funds.

arbitrage is long gone strategy now and only very few is conducting this still.

That's if you got the timing to buy those bitcoins at the right time because even if you know how to do this, it doesn't always go your way. It's a rule of thumb for many people to do this. Also, what happened in S. Korea, I think they said that people can't do what you're trying to say.

price difference has long occurred and is a common thing faced by traders,
As far as I know Korean exchange is difficult for people outside of Korea to penetrate. KYC is needed like a passport which everyone doesn't have, and the hardest thing is that you must use a Korean resident card,
for me, doing arbitrage is useless if you trade in small quantities, it runs out on shipping and trading costs

There are lot of things that you need to consider to do arbitrage trading. For some exchange, they require you to do strict KYC check and of course for every transaction. how much time it will take to confirm your transferred funds. Bot can also manipulate pricing. I tried it before but it didnt work for me. :(

We need to consider the time of the transaction because we can not predict the time accurately. Maybe before we send the bitcoin, the price is still high, but there is no guarantee for the price to stay at that price. Who knows, after we send, the price is down sharply and once the transaction got confirmed, we can not sell at a high price. As usual, high risk can give you a high profit but be careful. Not every time you will get your luck.

i have seen this difference a lot compared to small exchanges but what scares me is that small exchange that is just a virtual value they trick you so you can deposit on the exchange and forever forever you will lose your inherent assets. for example, it's been a long time since I bought some BTC with the difference from the no-name exchange and I've lost that BTC forever, please beware of scams.

It may seem very enticing to do arbitrage nowadays because of possible big profit when you buy the coin in low position, then sell it high. However there are risks. For sure the security have been tight at the present given that the exchangers have been informed about the abuse of platform and services. It's also possible that the exchangers have come up with blocking and banning bots or those who don't belong in that specific location where the price of coin is low. Or maybe, even if you bypass, you can't sell it in other place because it is only exclusive (the buy and sell) in that specific place.

Just like certain products that you can buy cheaply in a certain country. Sometimes these products aren't allowed to be distributed and resold outside the country's premises. It's just exclusive and intended to be consumed by the native citizens.

Yes, that's right you can now become known as a Lord of the Rings.
If you want to become more familiar with risk management, you can do some research in this area.

When checking Bitcoin prices, you need to keep in mind that there is no specific global Bitcoin price standard. Bitcoin is not tied to any currency, country or exchange. The question is the same as if you were asking: “Why is bread more expensive in this supermarket, or in this city/country compared to other countries?”. The short but precise answer is “because of supply and demand”. and maybe the transfer fee in South Korea is more expensive than other countries, I haven't tried it but this is my opinion.

But the movement in forex is too small plus you need to have a lot of capital to join there from what I've heard, compared to crypto, I am pretty sure that crypto is much better in terms of profit when you do the same buy low and sell high scheme, it might even be much higher by a big difference.

Bitcoin now reached $50k value and those who bought at $29k during the dip, already have huge profit. Holding bitcoin for a long period of time is really profitable. Buy low and sell high will give you profit but most others have huge losses due to fear, impatience and lack of knowledge about it . Investing in crypto is risky, so be careful.

Exchanges in south korea won't let everyone to make an account there. You can try if you have an account in both exchanges but in most cases arbitrage does not stay for long and before your coins are deposited and confirmed, the opportunity is already gone.

Users can search for information about which countries are prohibited from using the trading platform before they create an account in the terms and conditions of the platform. I don't like arbitrage trading although I see an opportunity to make a profit. Confirmation time will be one of the bottlenecks during arbitrage, when the network is busy then I believe you will miss the opportunity to sell it at the best price. I am also not used to doing KYC on many trading platforms because I want to keep my personal data confidential and secure. Some exchange may still be trustworthy because of their reputation, but we still have to weigh the risks.

If you want to make money in cryptocurrency, you must trade.  If you can trade then of course you can make huge income from cryptocurrency.  There are many coins that go up and down a lot from one exchange to another.  So of course if you trade you can get fairly good benefits from cryptocurrency.

This ironical and the difference in price usually balance within minutes, and I don't think Binance could stand that low to allow such thing to happen to them when they know that they are the best. Even though it's not on Binance it's happening, please don't waste your time cause this might be a trick especially to those exchanges that has no worth and does not k ow there right from there left. This might be a means to stock investors who are greedy into there shity exchange entrapping funds inside there exchange.

what I know by selling to a different exchange it will be quite difficult and cost money too, so it is not as easy as imagined. if we observe the price of bitcoin from the beginning until now then the movement is very significant where currently bitcoin is very feasible to get. Buying bitcoin at a low price and selling it again at a high price is certainly desired by all investors in order to get a big profit. so we really have to be smart in choosing coins and understand the market well so that the results we get are as desired.

Yes, this is critical info. There's no pointing buying lower on one exchange send it over to the second one and not have it confirm on time or worse be pending forever.

There have been a couple of times where this has happened and when using external exchanges not so familiar, I agree, the risks are higher.

Arbitrage opportunities are not that rare, they are there you just need to look and find them and then plan accordingly - but yeah, it can be a lucrative option for some  :)

Buying at a lower price and selling at a higher price is the main goal of any trading. However, in cryptocurrency, you can't buy anything at the same price. You have to wait after investing in the market when the price goes up.

It's true that each exchange usually has a different Bitcoin price, but doing arbitrage trading is not an easy thing to do. We have to take into account
many factors when we are going to do arbitrage, starting from the withdrawal fee and also the estimated time needed. Because usually the price
difference between one exchange and another exchanges moves very quickly, don't let our Bitcoin price drop to no different from the previous exchanges.
Moreover, we move our Bitcoin to exchanges that do not have a good reputation, it will be very risky. I do not recommend making a profit through
arbitrage trading, because the risk that will be faced is too big.

Worth if you would able to make transactions or transfers in the right time but if you get caught with the dump or even just with higher fees then it would really be a loss instead.

Arbitrage opportunities is really there but not all would really be that willing to take risk due to several factors which I can say that it isn't really simple as it looks.

Buy low and Sell high might be very basic but determining which is the bottom and which one is the peak is the most hardest thing here on this investment space.

Arbit trade happen in all coin but before doing that you need to checklist

- Legitmate of the Exchange ( its really important because there's bunch scam exchanger)
- Transaction Fee as you know bitcoin fee are higher
- spread of the orderbook
- transcation speed some chain like bitcoin is slow because exchange paid fee at normal rate or below

4K spread is something odd to me you better check first