Which country has the highest premium Bitcoin? Is it better to have a high premium rate of Bitcoin or a low one?

The price difference between Bitcoin is huge, forming the so-called "Bitcoin premium". Which countries have the highest premium? How do investors trade with premiums? This article will discuss in depth.

Countries with the highest Bitcoin premium: South Korea used to be the first choice

South Korea has long been known for its significant Bitcoin premium, mainly due to its strict capital controls and strong demand for cryptocurrencies in the domestic market. Although premiums have eased, they may still appear again during periods of market volatility.

Data shows that South Korea's Bitcoin trading price reached 10% above the global average in March 2024, setting a two-year high, highlighting the recovery of retail investors' enthusiasm for crypto assets. CryptoQuant's data also proves this phenomenon, in a specific period, the Korean market experienced an overly higher Bitcoin premium than the global average.

The emergence of this "kimchi premium" phenomenon is closely related to South Korea's regulatory environment, capital controls and strong market demand.

High premium and low premium: How should investors choose?

The high and low bitcoin premiums mean different opportunities and risks for investors:

• High premiums: This means strong market demand, and investors can make profits by making arbitrage on different exchanges (selling on high premium exchanges and buying on low premium exchanges). High premiums may also suggest further price increases, suitable for short-term investors. But high premiums may also indicate bubble risk.

• Low premium: means that the market supply and demand are relatively balanced, with less volatility and relatively low risks. It is suitable for long-term investors because it can reduce investment costs. A low premium may also mean that market demand is weak, but it may also be a good time to buy on dips.

In short, countries with the highest premium in Bitcoin are often those with strong demand, limited liquidity, strict regulation or unstable economic environment. The generation of premiums is the result of a combination of factors, including local market demand, regulatory policies and economic conditions. Before conducting Bitcoin transactions, investors must fully understand relevant laws and regulations and make rational decisions based on their own risk tolerance and investment goals. Only by conducting in-depth research on the market conditions of specific countries or regions can we better grasp investment opportunities.

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