#pixel $PIXEL ⚙️ Practical Application
Practical Steps:
1. Monitor Funding Rates: Check the perpetual contracts on Binance or analytical platforms like Coinglass. Look for an asset with a high and stable positive funding rate.
2. Choose the Asset: Start with a major cryptocurrency like $BTC or $ETH to ensure high liquidity and reduce the risk of unexpected liquidation.
3. Calculate Capital: Determine the amount you want to allocate to the strategy. This should be an amount you do not need in the near term.
4. Precise Hedging: Buy the asset in the spot market and open a short position with exactly the same dollar value. Example: If you buy 0.1 BTC in the spot market, sell 0.1 BTC in the perpetual contracts.
5. Rebalancing: As the value of the spot buy position will change with the price, while the short position will realize unrealized gains or losses, you may need to rebalance periodically (weekly or monthly) to maintain complete neutrality.
Assistance Tools:
Some platforms offer "Delta Neutral Mode" which facilitates the management of this strategy and reduces the risk of automatic liquidation.
📊 Advantages
· Steady Passive Income: This strategy can be an excellent source of passive income in sideways or bullish markets.
· Hedge Against Volatility: It protects your capital from sharp fluctuations, making it ideal during periods of uncertainty.
· No Need for Prediction
Practical Steps:
1. Monitor Funding Rates: Check the perpetual contracts on Binance or analytical platforms like Coinglass. Look for an asset with a high and stable positive funding rate.
2. Choose the Asset: Start with a major cryptocurrency like $BTC or $ETH to ensure high liquidity and reduce the risk of unexpected liquidation.
3. Calculate Capital: Determine the amount you want to allocate to the strategy. This should be an amount you do not need in the near term.
4. Precise Hedging: Buy the asset in the spot market and open a short position with exactly the same dollar value. Example: If you buy 0.1 BTC in the spot market, sell 0.1 BTC in the perpetual contracts.
5. Rebalancing: As the value of the spot buy position will change with the price, while the short position will realize unrealized gains or losses, you may need to rebalance periodically (weekly or monthly) to maintain complete neutrality.
Assistance Tools:
Some platforms offer "Delta Neutral Mode" which facilitates the management of this strategy and reduces the risk of automatic liquidation.
📊 Advantages
· Steady Passive Income: This strategy can be an excellent source of passive income in sideways or bullish markets.
· Hedge Against Volatility: It protects your capital from sharp fluctuations, making it ideal during periods of uncertainty.
· No Need for Prediction