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Author Topic: Arbitrage???  (Read 123 times)
WhiskeyTangoFoxtrot
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January 08, 2018, 09:08:28 PM
 #1

So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??
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January 08, 2018, 09:52:51 PM
 #2

Wow you lucked out having a setup like that, and no I don't think there is anything wrong with that. Perhaps there may be some tax implications but crypto has no borders so whoever cashes it out has to pay taxes not the person who trades. The tax thing may be your one and only issue, I can't think of any others.

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January 08, 2018, 11:07:04 PM
 #3

Unless and until you are physically traveling to Korea, your plan should work well. However, if your cousin starts sending huge amount of wires out of Korea, some regulatory issue may arise. So first enquire about the acceptable limit of money transfer in a financial year and trade within that limit. Maintain that limit very strictly and you should be good.

   
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January 08, 2018, 11:10:02 PM
 #4

So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??

A lot of things might go wrong. First you have to check with both laws. As cryptocurrency laws gets stricter and stricter in every country. You should also check for taxes, for sure you will have to pay taxes at some point. Next is the financial institution you will use to store your fiat, if you buy from the US that means you need a bank account to buy if not you can do cash but that's too burdensome. Then you need to sell the crypto in Korea, how do you propose to send the fiat from Korea to the US? Then that means you need an intermediary. That could eat up profits and also get unnecessarily attention from the government.

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Hydrogen
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January 08, 2018, 11:18:01 PM
 #5

Best advice I can think of: try it with a relatively small sum of money, 1st. There will be wire transfer fees and possibly taxes to be paid when moving fiat back to an exchange to buy crypto. In some cases, those taxes and fees might be higher than arb gains. Also the amounts which can be moved via wire transfer could be capped or have scaling fees which increase substantially the more capital is moved.

Good luck to you, I hope you can pull it off.   Cool

On the negative side, I remember reading at least one news article where it was said banks and regulators would begin to "crackdown" on "nefarious activities" like bitcoin arbitrage. Angry Can't say I've seen details on it so far, if indeed it will happen. African exchanges like http://golix.com could also provide good arb opportunity if a way could be found to make it work.

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January 09, 2018, 12:11:59 AM
 #6

So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??

I think there's nothing wrong with that. arbit actually buys somewhere cheap and sells it elsewhere for a higher price. with today's universal internet technology will make it easier for users to trade. currently limiting bitcoin trading is a regulation of each country allowing or not to trade bitcoin. if in my opinion it also can still be used as long as exchange and link is still open. of course by trading clandestinely. in principle it depends on you, whether you will comply with the regulations in your country or you will violate it. but I think it's okay to do that, it's all depend on you.

WhiskeyTangoFoxtrot
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January 09, 2018, 02:27:52 AM
 #7

Thanks for all the feedback guys! will do some research and try to make the most of this opportunity
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January 09, 2018, 04:01:04 AM
 #8

I mean while it will be possible, the big problem is moving the money out of Korea and into the United States. As I doubt the Korean government is going to want Crypto gained Fiat cash moving in and out of their banking systems, seems like a waste for them to let people flood their markets just to kill the price. It's probably best for them at the moment to slowly let arb traders in, as at the moment if they were to let them in it would kill the traders who make money in Korea and provide taxes for the government over there.

But yeah, try your luck dude, worst case you won't be able to do it.

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January 09, 2018, 04:52:45 AM
 #9

So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??

It's a good plan but the issue will be with fiat transfers. Banks would be alerted then if they detect an account having large amount getting in and out of the accounts. If the plan though would not involve any fiat transfer like you send an eth there and he would sell it for any other coin other than fiat then it would be a good plan. The only issue in here is when you convert your gains to fiat because banks are very particular now about cryptocurrency transactions and you should take into account too the fees involved if it is worth it.

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January 12, 2018, 12:35:31 AM
 #10

So I did this and the money is stuck on a KEB Hana Bank account now. Made 35% but it is stuck as when I tried to wire it back to the US account the bank called me the next day and said they are not allowed to send any money out made on Crypto. They track now when wires go abroad. This was Bithumb and about 9k USD going out (below 10k on purpose).

I am thinking of setting up an arbitrage company with the sole business purpose of this, then that should be fine. I am ok to pay takes on the profit. It is wrong that this is not working at all.
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January 12, 2018, 01:19:15 AM
 #11

So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??

I think it's good because we do arbitrage is to gain profit from the difference of price and exchange rate of currency, so for me this is legitimate only and many people who do something like this
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January 12, 2018, 02:52:23 AM
 #12

yes agree nothing wrong with that arbitrage its to take advantage from different current price in market value .
you can go a head . but i look some review in exchange in korea . some of them is a fake . maybe you can review before make a deal or make a big deal from one of them . thats my advice . good luck .
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January 12, 2018, 03:44:19 AM
 #13

A nice idea, but for this to be executed smoothly and properly, your cousin needs to be registered and fully verified on the Korean exchanges so that there will be no questions asked if the amount you've been sending became increasingly high. You also need to make sure that your cousin is fast enough to execute any trades needed in order to get a decent amount of profits and for your arbitraging activity to become viable in the long run. I myself am thinking of doing such, but with the sluggishness of the network as of these moments, the market has moved before I even get 1 confirmation on my transaction.

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January 12, 2018, 03:49:46 AM
 #14

This is going to be 1000x harder than you think. What's wrong with the plan? Um how exactly are you going to get your money back out? Your cousin would end up with all of the Korean won and you'd have 0 USD.

You can try to send funds outside of Korea but I mean, isn't that getting so much stricter right now? It's a good idea to do a test, but I wouldn't expect this to be a great opportunity. The idea of why there is such a massive price difference is mainly because no one can get their money out of the country.
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January 12, 2018, 03:51:22 AM
 #15

For sure everybody had an experience of this because Arbitrage is commonly used by people because it is buying and selling of assets and currency. Bitcoin is a good example of Arbitrage because it talks about vital currency in which you can do the transaction trasparency without the real money that being hand in. If you are good in bitcoin your currency is going bigger and bigger then that what we called an instant millioner because it proven already.

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January 12, 2018, 05:07:39 AM
 #16

So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??
Absolutely not so!)
You in this case will be considered to have received a profit, which means that you are obliged to pay tax on profitability, it is not important your cousin or brother!

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January 12, 2018, 07:58:42 AM
 #17

For sure everybody had an experience of this because Arbitrage is commonly used by people because it is buying and selling of assets and currency. Bitcoin is a good example of Arbitrage because it talks about vital currency in which you can do the transaction trasparency without the real money that being hand in. If you are good in bitcoin your currency is going bigger and bigger then that what we called an instant millioner because it proven already.

he just take advantage from the current price in there . i think its good enough . you can buy something in there that has the same price in around the world . like google wallet . steam wallet and selling . ( if the problem about wire internatonal transfer )
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January 12, 2018, 08:18:02 AM
 #18

Do this with small amount first and if you think it's profitable and you can do it with large sums of money with BCH/BTC/ETH make sure that you are familiar with what you are doing. Because if you will do this with small amount all the time and you will be eaten by the fees except you'll send it back through ETH which has lower fee. Just make sure that you are not violating any law on your end and as well on your cousin's end.

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January 12, 2018, 08:22:16 AM
 #19

So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??
There’s no wrong with your plan and what i only say is? Your so lick that you have family in korea that can manipulate or can gain easy money in just foing arbitage. Goodluck and just be carefull because you can also banned in there trading exchanges

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January 12, 2018, 08:33:37 AM
 #20

You are going to pay huge taxes, and you need to verify your Korean trading account, how are you going to do it? a lot of those exchanges are only accepting Korean residents, and zero tolerance about the US, because of the SEC laws.

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