The Rise of Crypto Trading Volumes in South Korea: A Closer Look at the Top Tokens

Introduction

In the past 100 days, South Korea has witnessed a significant surge in crypto trading activity. The country's leading crypto exchanges, Upbit and Bithumb, have reported their highest trading volumes during the first week of January 2024. Interestingly, the most popular coins traded in South Korea differ from the leading pairs on global platforms like Binance and Coinbase. This report delves into South Korea's top crypto pairs, ranked by their trading volumes.

Unique Top Tokens in South Korea

As of January 15, 2024, the five leading cryptocurrencies on Binance, in terms of trading volume, are BTC, ETH, SOL, XAI, and TIA. Similarly, Coinbase's top five tokens by volume include BTC, ETH, SOL, OP, and TIA.

While Binance and Coinbase are the largest crypto exchanges globally, dominating the 24-hour trading volume, in South Korea, it's a different story. Upbit and Bithumb have a stronghold on the local market, with Upbit holding a significant share of the country's aggregate crypto trading volume.

Although there is considerable overlap between the top five digital currencies traded on Binance and Coinbase, ethereum classic (ETC) emerges as the top coin on Upbit. ETC enjoys immense popularity in South Korea, with the majority (68.96%) of its trades conducted in Korean won.

In addition to Upbit, ETC also ranks as the fifth most traded coin by volume on Bithumb and holds the sixth position on Coinone. Notably, ETC is currently trading at a 4.65% premium on Upbit, while BTC is marked at a 4.40% premium on the same exchange compared to global rates.

Top Tokens on Upbit, Bithumb, and Coinone

On Upbit, the five leading cryptocurrencies by trading volume are ETC, BTC, T, SUI, and SOL. Bithumb's premier crypto assets include BTC, SOL, ETH, XRP, and ETC. Coinone's top five tokens are BTC, XRP, WEMIX, ETH, and SOL.

It's worth noting that 80% of threshold network token (T) transactions on Upbit are settled in Korean won, while 23.85% of SUI trades and 29.40% of all XRP swaps involve won settlements. Additionally, 80.18% of WEMIX's market trades are settled in won as well.

These exchanges, along with Korbit, have contributed to 2.8% of global ETH swaps and 6.93% of all BTC swaps in the last day. The data indicates that trading volumes on Upbit and Bithumb started to rise in September 2023, reaching their peak in the first week of January 2024. The daily trade volumes in January have surpassed any records set in 2023.

Growth of South Korea's Crypto Market

Over the past six months, South Korea's digital currency trading market has experienced remarkable growth, with record-breaking trading volumes on local exchanges. This trend indicates a positive outlook for crypto adoption in the country, as traders move beyond the usual leading pairs found on international platforms.

What are your thoughts on the increasing trading volumes in South Korea and the difference in top coins compared to other international platforms? Share your opinions in the comments section below.

Frequently Asked Questions

What precious metals are permitted in an IRA

Gold is the most widely used precious metal for IRA account accounts. Gold bullion coins and bars are also available as investments.

Precious and precious metals are considered safe investments, as they don’t lose their value over the course of time. They are also an excellent way to diversify your investment portfolio.

Precious metals are silver, palladium, and platinum. These metals share similar properties. Each metal has its own unique uses.

One example is platinum, which is used to create jewelry. For the creation of catalysts, palladium can be used. Silver is used to producing coins.

It is important to consider how much money you are willing to spend on your precious metals when making a decision about which precious material to choose. You may be better buying gold that is less expensive per ounce.

You should also think about whether you want to keep your investment private. If you are unsure, palladium is the right choice.

Palladium is worth more than gold. It's also more rare than gold. This means you might have to spend more.

The storage fees of gold and silver are also important factors to consider when making a decision between them. Storage fees for gold are determined by its weight. The price for larger amounts will go up.

Silver is best stored in volumes. You'll pay less if you store smaller quantities of silver.

Keep in mind all IRS rules when you store precious metals inside an IRA. You must keep track of all transactions and report them to the IRS.

Which type is best for an IRA?

It is crucial to find the right IRA for your needs. It is important to consider whether you want tax-deferred, maximized growth of your contributions, reduced taxes now and paid penalties later, or just avoid taxes.

If you have little money to invest, the Roth option might make sense. It's also worth considering if your plan is to work after the age of 59 1/2.

If you plan to retire early, the traditional IRA might make more sense because you'll likely owe taxes on the earnings of those funds. The Roth IRA is a better option if you plan to continue working well beyond age 65. It allows you to withdraw any or all of your earnings and not pay taxes.

Can I put gold in my IRA?

The answer is yes Gold can be added to your retirement plan. Because it doesn't lose any value over time, gold is a great investment. It protects against inflation. It is also exempt from taxes.

Before investing in gold, you need to know that it's not like other investments. You can't purchase shares in gold companies, unlike stocks and bonds. They are also not available for sale.

Instead, convert your gold to money. This means that it will be necessary to dispose of the gold. You cannot just keep it.

This is what makes gold unique from other investments. Like other investments, you can always dispose of them later. But that's not the case with gold.

You can't even use your gold as collateral to get loans. To cover a mortgage, you may need to give up some gold.

What does this translate to? You can't keep your gold indefinitely. You'll have to turn it into cash at some point.

You don't need to worry. All you have to do is open an IRA account. You can then invest in gold.

What Should Your IRA Include in Precious Metals?

You can protect yourself against inflation by investing your money in precious metals, such as silver and gold. This is not only an investment for retirement, but it can also help you prepare for any economic downturn.

While silver and gold have seen significant increases in the last few years, they are still safe investments since they don’t fluctuate as often as stocks. Plus, there's always a demand for these materials.

Predictable and stable prices for gold and silver are common. They tend to rise during economic growth and drop during recessions. They are great money-savers as well as long-term investments.

You should invest 10 percent of your total portfolio into precious metals. If you wish to diversify further, this percentage could be higher.

Can I physically possess gold in my IRA account?

Many people are curious if they can possess physical gold in an IRA. This is a valid question as there is no legal route to it.

You can still own gold in an IRA if you look at the law.

The problem is that most people don't realize how much money they could save by putting their gold in an IRA instead of keeping it in their own homes.

It's very easy to dispose of gold coins, but much harder to make an IRA. If you decide to keep your precious metal in your own home you will have to pay two taxes. The IRS will collect once and the state where your residence is located will collect the other.

It is possible to lose your gold and pay twice as much tax. Why would you want it to stay in your home?

Some might argue that gold should be safe at home. However, to guard yourself against theft, it is worth considering storing your gold in a more secure location.

If you're planning on visiting frequently, it is best to keep your gold safe at home. If you leave your gold unattended, thieves can easily steal it while you're out of town.

A better option is to store your gold in an insured vault. Your gold will be protected against fire, floods, earthquakes, and robbery.

You won't be responsible for paying any property tax if you store your gold in a vault. Instead, you will have to pay income tax for any gains you make selling your gold.

You may be interested in an IRA if you don't want to pay taxes on your gold. With an IRA, you won't have to pay income tax even though you earn interest on your gold.

Since you aren't required to pay capital gains tax on your gold, you'll have access to the full value of your investment whenever you want to cash it out.

You won't have to move your gold because IRAs are federally regulated.

The bottom line? You can own your gold in an IRA. Your fear of it being stolen is what holds you back.

What Precious Metals Can You Invest in for Retirement?

The first step to retirement planning is understanding what you have saved now and where you are saving money. To find out how much money you have, take a inventory of everything that you own. This includes stocks, bonds and mutual funds, as well as certificates of deposit (CDs), life policies, annuities and 401(k), plans, real estate investments and other assets, such precious metals. You can then add up all these items to determine the amount of investment you have.

If you are less than 59 1/2 years of age, you may be interested in opening a Roth IRA. A Roth IRA, on the other hand, allows you to subtract contributions from your taxable revenue. However, you won't be able to take tax deductions for future earnings.

If you decide to invest more, you will most likely need to open a second investment account. Start with a regular brokerage account.

How does a gold IRA generate interest?

It all depends on how big your investment is. If you have $100,000, then yes. You will not be able to answer if your income is less than $100,000

The amount you invest in an IRA affects its ability to earn interest.

If you have more than $100,000 in retirement savings each year, you might consider opening a regular brokerage accounts.

You will likely earn more interest there, but you'll also be exposed to riskier investments. If the stock market crashes, you don't want all your money to be lost.

A IRA will be more beneficial if you can only contribute $100,000 annually. At least until the market recovers.

Statistics

If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
Silver must be 99.9% pure • (forbes.com)
SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)

External Links

How To

How to convert your IRA into a Gold IRA

So you want to move your retirement savings from a traditional IRA into a gold IRA? This article will assist you in that endeavor. Here's how to make the switch.

The process of transferring money out of one type of IRA (traditional) and into another (gold) is called “rolling over.” Rolling over an account has tax benefits. Others prefer to invest in tangible assets, such as precious metals.

There are two types IRAs – Traditional IRAs and Roth IRAs. The main difference between the two types of IRAs is that Roth IRAs do not allow investors to deduct taxes from their earnings. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. If you invested the same amount in a Roth IRA, however, you'd be able to keep every penny.

These are some things to consider if you plan to convert from a Traditional IRA to a Gold IRA.

First, you will need to decide whether your current balance should be transferred to a new account. Transferring money will result in income tax being paid at the normal rate for earnings greater than $10,000. However, if you roll over your IRA, those earnings won't be subject to tax until you reach age 59 1/2.

Once you've made up your mind, you'll need to open up a new account. You will likely need to show proof of identity, such as a passport, Social Security card, or birth certificate. After that, you'll need to sign paperwork proving you own an IRA. Once you've filled out the forms you'll send them to your bank. The bank will verify your identity and provide instructions for sending wire transfers and checks.

This is the fun part. Now, deposit money into your account and wait for approval from the IRS. After approval, you'll receive a letter stating that funds can be withdrawn.

That's it! All you need to do now is watch your money grow. You can also close your IRA and transfer the balance to a new one if you change your mind.

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By: Jamie Redman
Title: The Rise of Crypto Trading Volumes in South Korea: A Closer Look at the Top Tokens
Sourced From: news.bitcoin.com/south-koreas-crypto-volumes-peak-in-2024-as-upbit-and-bithumb-dominate-local-market/
Published Date: Mon, 15 Jan 2024 16:30:43 +0000