Do you know how to arbitrage? How to achieve capital preservation and an annual income of around 10%!
Today I will share a method of 'one fish, three meals'.
What does 'one fish, three meals' mean? Simply put, it refers to hedging!
Let me give you an example: Suppose you buy 1000 BNB in spot trading, and currently the contract rate is positive. Then you open a short position of 100 BNB at 10x leverage. Holding more long positions will incur funding fees for the short position. At this point, your BNB is rising, and you're losing on your short position, but your profit from the spot can offset the loss from the short position, and you can still earn from the funding fees.
After buying BNB, you can stake it for mining and also receive airdrops. Even if the price of BNB drops, you have the short position to hedge and can offset your losses. When there are no new mining opportunities, you can just put it into wealth management to earn interest.
Although this method earns slowly, it is very stable.
If anything I said is incorrect, feel free to correct me, experts! 😂