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Huge price difference between South American and North American markets.
12-18-2017, 01:12 PM
I've been following the prices on different markets very closely for over 2 weeks now, and I noticed something. There is always +-%10 difference between Brazilian and US exchanges.
As we speak BTC is priced at $18600 on Coinbase, on Brazils biggest exchange it is priced in BRL which is equivalent to 21000$ in the current exchange rates.
Let's say a person named John Doe has bank accounts in US and Brazil, lets says he buys in Coinbase, and then sells it on Foxbit.
In theory it seems viable, but what about in practice?
There are two risks here.
1. Volatility of Bitcoins price
2. Exchange rate risk, BRL is not the most stable currency out there.
But I think the 10% difference is more than enough to compensate for this.
Let's brainstorm guys.
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Huge price difference between South American and North American markets.
12-18-2017, 04:28 PM
I live here. I still need to get a CFP number before I can open a bank account. It's a raging pain in the ass but it's doable. I think that this type of arbitrage is a good way to make some cash.
The Maximally Pathetic Schema: Xs who labor to convince Ys that “I’m not one of those despicable Zs!,” when in fact it is obvious to the meanest intelligence that the Ys see no difference between Xs and Zs, don’t care anyway, and would love to throw both Xs and Zs into a gulag.
- Adrian Vermeule
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Huge price difference between South American and North American markets.
12-20-2017, 07:41 AM
Quote: (12-19-2017 11:04 PM)booshala Wrote:
Quote: (12-18-2017 04:28 PM)Bill Brasky Wrote:
I live here. I still need to get a CFP number before I can open a bank account. It's a raging pain in the ass but it's doable. I think that this type of arbitrage is a good way to make some cash.
As talked about previously when Korea/Japan were showing 20-25% premiums, the hardest part of this type of arbitrage is capital controls limiting outgoing money from these countries. I don't know Brazil's AML/KYC/capital controls policies as well as I do Korea's or Japan's, but I'm guessing that they're similarly inclined to keeping money within the country. Having said that, if you're OK cashing out crypto for Brazilian Real and using it in Brazil, it seems like a great way to get a 10% discount on living costs.
This is the only thing I can see getting in the way. Brazil is hardcore with getting money out of the country.
The Maximally Pathetic Schema: Xs who labor to convince Ys that “I’m not one of those despicable Zs!,” when in fact it is obvious to the meanest intelligence that the Ys see no difference between Xs and Zs, don’t care anyway, and would love to throw both Xs and Zs into a gulag.
- Adrian Vermeule
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Huge price difference between South American and North American markets.
12-20-2017, 08:07 AM
I've been doing this between USA vs Hong Kong and USA vs Turkey markets. It pays off really good from time to time.
