How can a college student use 3,000 yuan to earn over 10,000 yuan in interest every month?
Many college friends ask me how to make money through funding rates, especially when they have a small amount of funds. How can they use 3,000 yuan to generate interest on a monthly income of over 10,000 yuan?
Let me take Bitcoin as an example to explain in detail:
Suppose you are short when the price of Bitcoin is 73,700, then according to the current rate, the long side needs to pay the short side a funding fee. The specific rates every 8 hours are different. Taking the Ethereum I shorted as an example, a 400U contract (about 3,000 yuan) can receive a capital fee of 13 to 16 yuan every 8 hours, three times a day, which is 39 to 48 yuan.
If you choose the short position well, you can always hold this contract, so that the monthly capital fee can exceed 10,000 yuan. For example, if you are shorting Bitcoin at 73700, and it has been almost a month now, and the price of Bitcoin still has not risen, and it has not even broken through 72000, then you can always hold this short contract and continue to collect funding fees.
Of course, this is just an idealized example. In actual operation, you need to consider many factors, such as:
Funding rates of exchanges: Different exchanges charge different funding rates, so you need to choose an exchange with a lower rate.
Margin ratio of the contract: The lower the margin ratio, the less capital you need, but it also means the higher the risk.
Market fluctuation risk: If the market fluctuates significantly, your contract may be liquidated, so you need to do a good job in risk management.
Here are some things to note when selling short contracts:
Choose a contract with good liquidity: For a contract with good liquidity, the transaction price is closer to the real market price and it is easier to close the position.
Don’t operate with a full position: Never invest all your funds in one contract, leave enough room for risk.
Set a stop loss: Stop loss can help you limit losses and avoid liquidation.
Do a good job in market analysis: Before going short, you must fully analyze the market and determine the market trend.
