What are some popular examples of successful arbitrage trades in the cryptocurrency industry?

3 answers

• Nov 27, 2021 · 3 years ago
  Sure! One popular example of a successful arbitrage trade in the cryptocurrency industry is the so-called 'Kimchi Premium' in South Korea. In early 2018, the price of Bitcoin on South Korean exchanges was significantly higher than on other global exchanges. Traders took advantage of this price difference by buying Bitcoin on exchanges outside of South Korea and selling it on South Korean exchanges, making substantial profits. This phenomenon attracted a lot of attention and became a well-known example of profitable arbitrage trading in the crypto world.
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• Nov 27, 2021 · 3 years ago
  Absolutely! Another notable example is the 'Mt. Gox arbitrage' that occurred in 2014. At that time, Mt. Gox, one of the largest cryptocurrency exchanges, was experiencing liquidity issues and had a significantly lower Bitcoin price compared to other exchanges. Traders quickly realized this opportunity and bought Bitcoin on other exchanges, then transferred it to Mt. Gox and sold it at a higher price, making substantial profits. This incident highlighted the potential for arbitrage trading in the crypto market.
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• Nov 27, 2021 · 3 years ago
  Well, let me tell you about a fascinating arbitrage opportunity that happened recently. In early 2021, there was a temporary price discrepancy between Bitcoin on Coinbase and Binance. Traders noticed that the price of Bitcoin on Coinbase was slightly higher than on Binance. They quickly took advantage of this situation by buying Bitcoin on Binance and selling it on Coinbase, making a small but profitable trade. This example shows that even small price differences can be exploited for arbitrage trading in the cryptocurrency industry.
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