People often ask me if there is a way in cryptocurrency to "earn stable profits without betting on price fluctuations."

If you want to avoid the anxiety of chasing prices while earning more than just saving in a bank or buying financial products—there really is! Today, I’m introducing a "balance treasure" in the crypto world for beginners: funding fee arbitrage, with an annualized rate that directly outperforms traditional financial products, and the operation is as simple as an elderly person crossing the street, making it easy for newcomers to get started.

First, let me clarify that this article is from a beginner's perspective, covering the most basic content. It might seem a bit "elementary" to veterans who have been in the crypto space for years, so feel free to choose what to read.

If there’s anything incorrect, please feel free to point it out, and let’s discuss the essentials together!

In fact, funding fee arbitrage isn’t that mysterious. It essentially involves utilizing the "funding rate" mechanism of the perpetual contract market while opening two positions that are "opposite in direction, equal in value, and in the same cryptocurrency"—one spot position and one perpetual contract position.

Simply put, when the funding rate is positive, those who go long have to pay those who go short; if it’s negative, those who go short pay those who go long. Our goal is simple: hedge risks with these two positions and steadily earn this "funding fee."

This might still sound a bit convoluted, so let me break it down further. When we buy a perpetual contract, regardless of whether you go long or short, it’s basically impossible to "take a big advantage" with just one position.

Why? For example, if you go long and the price happens to rise, it seems like you’ve made a profit, but you have to pay a funding fee to the short position. Conversely, even if you lose money on a short position, you can still receive a "consolation prize" from the long position, which is this funding fee. You can understand the specifics by looking at this image.

Next, let’s discuss the operational principles and specific steps. Don’t worry, we’ll take it step by step to ensure you’re not overwhelmed.

What we need to do is actually three things: first, open a short position in a perpetual contract that has the same value as the spot (if the price rises, you can receive the funding fee at 0:00, 8:00, and 16:00 every day); but there’s a problem with opening a short position—if the price rises, the contract will incur a loss, right? So the second step is to buy the same value in spot, so that the losses from the contract can be offset by the gains from the spot; when the market reverses later, we close the contract and sell the spot, and this round of arbitrage is complete.

Doesn’t that seem particularly simple? But in practice, there are two "pits"! The first is "finding opportunities is difficult": with hundreds of perpetual contracts in the market, it’s like hundreds of "tug-of-war matches." How do you know which match has the "incentive fee" (the funding fee) that is both high and stable? The second is "slow operation": the actions of opening a short position and buying spot must be completed simultaneously in an instant; if you’re a bit slow, the price difference changes, and it’s easy to incur losses.

If you’re doing it manually, you won’t finish placing orders without clicking the mouse 200 times, which is even more troublesome than just now when you were trying to grab benefits!

So, is there a way to seize market opportunities instantly and complete operations in milliseconds? Of course, there is—AiCoin! Finally, it’s time for our "magic tool" to shine.

Let me first tell you where to find it: open AiCoin and follow this path—Strategy → Smart Arbitrage → Arbitrage Opportunities → Positive Arbitrage, and you’ll find it right away.

On this page, you can see all current arbitrage opportunities in the market, and they are updated in real-time! The AiCoin backend scans the entire market 24/7, automatically filtering out the opportunities with the highest and most stable "rent" (the funding fee), and it directly marks them with "annualized return," so you can see at a glance how much you can earn.

What’s even more reassuring is that it can completely free your hands—you just need to click "Arbitrage Now," and AiCoin can operate across markets in milliseconds, simultaneously helping you complete the "buy spot + short contract" hedge position without any delay.

Let me explain a few key terms on the page so you won’t be confused later. "Rate Combination" means selling contracts on one exchange while buying spot on another to complete the arbitrage. Remember to choose reliable and stable exchanges, safety first;

"Current Annualized" is easy to understand; it’s the profit rate you can expect; "Current Rate" is what we referred to earlier as the "consolation prize," settled every 8 hours; what is "Price Difference Rate"? It’s the price difference between the contract you sell and the spot you buy, and AiCoin will calculate it in advance, telling you how much price difference cost you need to invest; "Estimated Break-even" and "Seven-Day Annualized" are even more familiar—the former tells you how long it will take to break even, and the latter tells you how much you can earn in a year. The interface after clicking looks like this, and the operation is really very simple.

Does it seem less difficult after reading? Have you all learned it?

To summarize, this arbitrage method is not only simple but also highly operable. Most importantly, in the cryptocurrency space, it is definitely one of the lowest-risk types. We’ve been playing with cryptocurrency for so many years; we can’t just let our money sit in the bank earning that meager interest, right?

Alright, that’s all for the content on funding fee arbitrage (also known as positive arbitrage). If you want to learn more about arbitrage-related knowledge, remember to keep an eye on the live broadcasts from the AiCoin Research Institute, and we’ll chat more about the essentials next time!

By the way, one last reminder: all operations here are related to exchanges, so when choosing an exchange, be sure to pay attention and prioritize compliant and reputable platforms to avoid falling into the trap of "scam exchanges"!
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This article only represents the author's personal views and does not represent the platform's stance or views. This article is for information sharing only and does not constitute any investment advice to anyone.

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