In the cryptocurrency world, stories of instant wealth are told every day, but the tragedies of liquidation have never ceased. When a bull market arrives, ETH leads its younger siblings in a wild surge, BTC remains steady as a rock, and altcoins dance chaotically. On the surface, it looks like there’s gold everywhere, but hidden dangers lurk—how many people woke up to find their positions wiped out after the 312 crash?
High leverage gambling, rolling contracts with increased positions, hundred times short-term trading... these methods are exciting, but in essence, they are life gambles. Winning means enjoying the company of young models, losing means working on construction sites. Real experts have long been using low-risk strategies to steadily make money, without staring at the market, unafraid of sharp price movements, able to profit in both bull and bear markets.
Low-risk strategies are the ultimate answer for veteran traders in the cryptocurrency world.
1. Funding Rate Arbitrage - Earning rent while lying down.
In a bull market, the funding rate of perpetual contracts serves as 'protection fees' for short sellers. Hold onto spot, open some short positions for hedging; if the coin price rises, you profit, and if it falls, you also profit—because short positions can free-ride on the fees paid by longs.
For example, with a position of 330 BTC, you could hedge by opening a 0.4x short position, earning a steady $1,000–$3,000 daily, with a 10% return in a month. Isn’t that more appealing than high-leverage gambling?
Key point: Prioritize coins with high fees (like ETH), don’t be greedy, and control the hedging ratio well.
2. Perpetual - Delivery Price Difference Arbitrage - Picking up market leaks.
When the price difference between quarterly contracts and perpetual contracts widens, it’s a money-making opportunity. During the frenzy of a bull market, quarterly contract premiums can surge above $500; at this time, open long positions on perpetual contracts and short positions on quarterly contracts, profiting when the price difference narrows.
In the great bull market of 2019, the price difference between OK quarterly and BM perpetual contracts once soared to $800 and quickly dropped to zero after a crash—this money should not go unearned.
Key point: Only take action when the price difference exceeds $500; ensure sufficient margin, and don’t get wrecked by one-sided market trends.
3. Cross-species hedging - specifically for dealing with wild price fluctuations.
In a bull market, there are always leaders and trend followers. Go long on the strongest coins (like ETH), go short on the weakest (like EOS). When prices rise, the leaders soar higher; when they fall, the weak suffer more, providing a stable hedge.
On August 2nd, there was a sharp decline; ETH dropped by 20%, and EOS dropped by 30%. If you went long on ETH and short on EOS, you would have made a profit.
Key point: Choose currency pairs with high correlation, adjust position sizes according to volatility (for example, if ETH Beta is twice that of EOS, then increase your position size by two times).
4. USDT exchange rate arbitrage - certainty in the cyclical cycle.
At the end of a bull market, retail investors frantically exchange coins, and USDT often trades at a negative premium; when a bear market arrives, experienced traders rush to buy USDT for safety, and USDT then trades at a positive premium. Accumulate USDT at low prices, exchange coins at high prices, and engage in cyclic arbitrage with almost no risk.
Key point: Pay attention to market sentiment; buy in batches when USDT premium is below -3%.
Conclusion: Making money doesn’t require desperate efforts; smart people only earn stable profits.
What is the most ironic thing about the cryptocurrency world? - Most people pursue wealth but can't even achieve a 10% annualized return. Low-risk strategies may seem slow, but through compound interest, the returns outperform 99% of gamblers.
Don’t be fooled by high-return myths; what suits you is the true way. In a bull market, stability is more important than speed.
Follow Yuanbao@crypto 元寶 to learn more
