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How to earn funding fees in perpetual contracts?
You can earn funding fees in perpetual contracts through the following methods:
Long and short trading: If you predict that the funding fee will be positive, you can go long on the contract and simultaneously go short an equal value contract. When the funding fee occurs, you will receive the funding fee from the long contract and pay the same amount of funding fee to the short contract. This way, you can profit from the difference in funding fees.
Adjust leverage: In perpetual contracts, you can adjust your leverage based on market conditions. If you predict that the funding fee will be positive, you can increase your leverage to maximize your earnings from the funding fee. However, it is important to note that increasing leverage also increases risk.
Hold the contract until the funding fee occurs: If you hold the contract until the funding fee occurs, you will automatically receive the funding fee income. This method does not require active trading but involves holding costs and risks associated with the contract.
Exploit arbitrage opportunities: In the perpetual contract market, funding fee rates may _y across different exchanges. You can take advantage of these differences by engaging in arbitrage trading between different exchanges to profit from the funding fee differentials. This requires quick trading and keen market observation.
Whichever method you choose, earning funding fees requires a deep understanding of the market and accurate prediction abilities. It is important to manage risk, set appropriate stop-loss and take-profit levels, and avoid losses caused by unpredictable market fluctuations.😇 #contentStar# #Gatepost#
What is Circulating Supply ?
The term circulating supply refers to the number of cryptocurrency coins or tokens that are publicly available and circulating in the market.
The circulating supply of a cryptocurrency can increase or decrease over time. For example, the circulating supply of Bitcoin will gradually increase until the max supply of 21 million coins is reached. Such a gradual increase is related to the process of mining that generates new coins every 10 minutes, on average.
The circulating supply refers to the coins that are accessible to the public and should not be confused with the total supply or max supply. The total supply is used to quantify the number of coins in existence, i.e., the number of coins that were already issued minus the coins that were burned. The total supply is basically the sum of the circulating supply and the coins that are locked up in escrow. On the other hand, the max supply quantifies the maximum amount of coins that will ever exist, including the coins that will be mined or made available in the future.
Moreover, the circulating supply of a cryptocurrency can be used for calculating its market capitalization, which is generated by multiplying the current market price with the number of coins in circulation. So if a certain cryptocurrency has a circulating supply of 1,000,000 coins, which are being traded at $5.00 each, the market cap would be equal to $5,000,000.