๐ How to Read a Crypto Premium Tracker
Complete Beginner's Guide
A crypto premium tracker shows you the price difference between a local exchange and a global benchmark (usually Binance). This seemingly simple number is one of the most powerful signals in crypto trading โ if you know how to read it.
What Does the Premium Percentage Mean?
The premium is calculated as:
Premium = (Local Price โ Binance Price) / Binance Price ร 100%
Example: Upbit XRP = $2.06 | Binance XRP = $2.00
Premium = (2.06 โ 2.00) / 2.00 ร 100 = +3.0%
Example: Upbit XRP = $2.06 | Binance XRP = $2.00
Premium = (2.06 โ 2.00) / 2.00 ร 100 = +3.0%
Positive Premium (+%)
A positive premium means the local exchange price is higher than Binance. This is the classic "Kimchi Premium" situation.
- +0.1% to +1%: Normal โ just exchange spread and minor local demand
- +1% to +5%: Noticeable โ local buying pressure, possible arbitrage opportunity
- +5% to +15%: High premium โ strong local FOMO, major arbitrage opportunity
- +15% and above: Extreme โ market overheating, seen in Korea 2017/2021
Negative Premium (โ%) โ "Reverse Premium"
A negative premium (called ์ญํ in Korean) means the local price is lower than Binance. This is rarer but equally exploitable.
- 0% to -1%: Slightly cheap โ typical bear market or low-volume period
- -1% to -3%: Discount territory โ strong selling pressure, reverse arbitrage possible
- Below -3%: Panic selling โ local market dumping faster than global
How to Use the Premium as a Market Signal
| Premium Level | Market Reading | Action |
|---|---|---|
| +10% and rising | Local market overheating | Potential sell signal for local holders |
| +3% to +10% | Active arbitrage window | Arbitrage opportunity (if fast coin available) |
| -1% to +1% | Markets aligned | No major signal |
| -3% and falling | Local panic selling | Potential buy for long-term investors |
Reading the CoinGapRadar Interface
- Select a country: Click any country button (KR, JP, IN, etc.) to see that exchange's premium vs. Binance.
- Select a coin: Switch between BTC, ETH, XRP, XLM, DOGE, TRX to compare premiums across assets.
- Use the "vs" comparison: Compare two local exchanges directly (e.g., Korea vs. Japan) to find cross-market opportunities.
- Check the ranking: The global ranking shows which country has the highest premium right now โ useful for spotting hot markets.
๐ก Key Insight: Premiums tend to be highest in countries with strict capital controls (South Korea, India) and lowest in countries with free capital flows (USA, Australia). The gap reflects how "closed" a market is.
๐ก Try the Live Premium Tracker โ