Do you know you can make more than $60K a month in crypto without taking directional risk or predicting price?
This is called funding arbitrage and institutions have been doing this for years.
Every crypto exchange on perpetual futures pays funding rates every 8 hours to keep prices anchored to spot. When funding rate is positive, longs pay shorts and when it’s negative, shorts pay longs. You collect the funding fee by holding both sides.
Let’s say bitcoin’s funding rate is 0.08%. Buy $50K of BTC spot at $94,000. Short $50K of BTC perpetual at $94,000. If BTC drops to $90K, you lose $4K on spot but gain $4K on the short. If BTC pumps to $98K, you gain $4K on spot but lose $4K on the short.
But every 8 hours, one side pays the other. You’re short, so you collect that payment. $50K position = $120 daily. That’s $3,600 monthly on a position where Bitcoin’s price could go anywhere and you don’t care. Now, you don’t have to necessarily use bitcoin, because with most altcoins, you are easily going to get funding rates as high as 1% - 2% which is literally free money making opportunity. Just by exploiting 2% opportunities, you could make $70K a month without any directional risk.
And in case you are thinking it’s too good to be real, just go to Coinglass and checking the funding rates of ARPA and BERA sitting at +1.6% and -2.6%. You literally have two realtime funding mispricing opportunities right now.
ARPA at +1.6% per 8 hours
$50K position = $2,124 daily = $63,720 monthly
BERA at -2.6% per 8 hours
$50K position = $3,690 daily = $110,700 monthly”
Cross exchange arbitrage is where it gets even more interesting. Exchange A has funding at 0.15%. Exchange B shows -0.05%. Long on B, short on A. You get paid on both sides. Net spread of 0.20% per 8 hours equals 219% APR.
CoinGlass has two amazing scanners for this that not many people use. Spot-perpetual arbitrage for single exchange opportunities and cross-exchange funding rates for platforms. Both are updated in real time.
Liquidation risk exists but only if you are using high leverage during extreme volatility. Stay at 2-3x and monitor both legs. Exit when funding drops below your threshold.
Bookmark this. Check CoinGlass daily. When funding is above 0.5% or below -0.5% you’ll have a solid opportunity and know exactly what to do.
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