Bitcoin | Earn immediate profit with local exchanges.

Greetings!

I have been studying cryptocurrency for quiet some time now and it is safe to say that this is not a "Get Quick Rich" scheme. However, there are certain ways you can gain profits quicker than buy and HODL.

I am going to be talking about one such way. Although this is possible in India, it may very well be possible in your country as well.

The Bitcoin market in India is divided into 2 segments, Local and International.

The Indian exchanges show the price of 1 BTC couple of thousand higher than the international exchanges (e.g. Coinbase, Kraken, etc.). No, this is not a crack or flaw in the system. The price on local exchanges are determined by the demand/supply ratio on the national level. Even during the recent bloodbath the prices on these exchanges did not go as low as the international market.

At the time of writing this post (7:48 PM IST) the buying price on Coinbase is $10,500 and on the Indian exchange the selling price is $13,300. There is currently a profit of $2800.

This is from Coinbase:

This is from Zebpay:

How would this work:

1 . You need account in local and international exchanges. It may not be possible to have an account in the international market, if you reside in India and vice a versa. This the main reason why its difficult to make this work. You will need to have a trusted person on the other end who would either purchase or sell bitcoin.

2. Now you need to purchase BTC. Keep in mind that Coinbase charges network fees and in order to make this work you need to calculate the fees as well. My experience tells me that that is high profit if you invest $500 or more. Since coinbase has fluctuating fees for sending btc, it is important that you check how much you will be charged before sending.

3. Now that it has been purchased, you need to send it to an Indian exchange for withdrawal. The Indian exchange charge a nominal fee for Rs. 10 to withdraw the funds to a local bank account. Before you withdraw, it will show you the BTC to INR conversion which should tell you how much cash is the BTC worth.

4. Once the funds are in your bank account, pocket the profits and invest the original amount back into the international market.

5. Now to send the funds for purchase, you can choose multiple modes of transfer. I prefer PayPal, it’s the best out of all the available modes.

You may be wondering why others have not tried this already. It is not easy to have accounts on both the exchanges and harder to have trusted people to make this work. You also need a lot of patience to make this work since Coinbase doesn’t give you btcs immediately.

Do let me know what do you think about this and if your countries’ exchanges are the same way.