Why is Bitcoin priced higher on South Korean exchanges than exchanges everywhere else? In this episode of Trading Mindset, we explore the Kimchi Premium and how Limits to Crypto Arbitrage allow price differences between markets to exist.

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Factual and Statistical Sources:
Barberis, Nicholas and Thaler, Richard H. A Survey of Behavioral Finance (September 2002). NBER Working Paper No. w9222. Available at SSRN: https://ssrn.com/abstract=332266

Choi, Kyoung Jin and Lehar, Alfred and Stauffer, Ryan. Bitcoin Microstructure and the Kimchi Premium (January 4, 2022). Available at SSRN: https://ssrn.com/abstract=3189051 or http://dx.doi.org/10.2139/ssrn.3189051

Herschberg, M. (2012). Limits to Arbitrage: An Introduction to Behavioral Finance and a Literature Review. Palermo Business Review, No. 7, 7–23.

Lee, Jangyoun and Oh, Taehee. The Kimchi Premium and Bitcoin-Cashing Outlets. Available at SSRN: https://ssrn.com/abstract=4145872

Edited by: Gregory Accetta

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