Core Points
XT pledge lending provides ultra-low interest rate funding support for arbitrage, with operations completed entirely on the platform, no need to transfer coins, and lower risk.
Replacing traditional leveraged trading with fixed-rate pledge lending instead of high-interest margin financing, reducing interest costs by over 90%.
Utilizing perpetual contract funding rate arbitrage, simply borrow BTC or ETH to short, and steadily obtain daily passive income.
All three strategies are based on XT platform's internal functions, simple and safe, without needing to switch platforms or wallets, especially suitable for beginners to try.
By reasonably setting loan periods, paying attention to funding rates, and repaying in advance, arbitrage returns and risk control efficiency can be further improved.
Would you like to try something that can increase your crypto earnings without frequent trading and excessive risk?
This is the charm of arbitrage - it's not a game of dramatic price fluctuations, but a steady way to earn coins through funding rate differences or market mechanism variations.
Many mistakenly believe arbitrage has a high threshold, requiring multiple exchanges, cross-platform trading, and real-time monitoring. However, XT's pledge lending service has simplified arbitrage operations to "completing everything within one platform". You can borrow BTC or ETH at low rates and complete arbitrage operations within XT's spot, leverage, and perpetual contract markets.
Currently, XT's pledge lending fixed annual interest rates are highly competitive: BTC as low as 1.23%, and ETH only 1.50%. Previously, these arbitrage opportunities were mostly controlled by institutions, but now ordinary users can easily get started.
This article will introduce three low-risk, clear-operation arbitrage methods suitable for beginners and advanced users. More importantly, your funds remain on XT throughout, without constant transfers, improving efficiency and security.
Whether you're a newcomer to crypto arbitrage or a trader looking to expand strategies, these three strategies can be immediately applied to start your BTC and ETH passive income journey.
Why Use XT Pledge Lending Instead of Traditional Leverage?
XT Pledge Lending is a very practical alternative. Compared to traditional margin borrowing, XT lending has a much lower fixed annual interest rate (currently 6% APR for 7 days USDT lending, 7.5% APR for 30 days), allowing you to obtain the same leverage exposure at a lower cost, significantly improving overall return rate while reducing potential risks from compound interest.
Operation Process Overview: Step-by-Step Guide
1. Borrow USDT through XT Pledge Lending
Choose a fixed loan term (6% APR for 7 days, or 7.5% APR for 30 days), flexibly selecting based on your trading plan.
2. Buy BTC or ETH in the XT Spot Market
Use the borrowed USDT to purchase BTC or ETH, effectively establishing a long position similar to traditional margin trading.
XT.com BTC/USDT Margin Trading Pair
3. Hold + Close Position + Repay
After reaching your profit target, sell BTC or ETH back to USDT, repay the XT lending principal and interest, with the remainder being your net profit—and the interest cost is far lower than traditional leverage!
[The translation continues in the same manner for the rest of the text, maintaining the specified translations for specific terms.]Strategy Three: Capture ETH Perpetual Contract Funding Fee Arbitrage Opportunity through XT Staking Lending
This strategy is similar to the previously mentioned BTC arbitrage method, but the ETH coin-margined perpetual contract market usually has larger fluctuations, making timing and funding rate monitoring particularly important. Through XT's low-interest ETH lending service, you can continuously earn daily returns in a market leaning long with positive funding rates.
How Does ETH Arbitrage Work?
Similar to BTC perpetual contracts, when the ETH/USD coin-margined contract market leans long, users who are long will regularly pay funding fees to short users. You only need to borrow ETH through XT and open a short position to collect these daily earnings.
The operation steps are very simple, just follow along:
1. Use Altcoins or stablecoins as collateral:
Pledge mainstream Altcoins like SOL, XRP, BTC on XT.com, or stablecoins like USDT, USDC to obtain borrowing quota.
2. Borrow ETH through XT staking lending:
Select a suitable loan term, with XT currently offering ETH lending services at a minimum annual interest rate of 1.5% (7 or 30 days options available).
3. Open a short position:
Sell the borrowed ETH directly in XT's ETH coin-margined perpetual contract market to establish a short position.
XT.com ETH/USD coin-margined perpetual contract trading pair
4. Collect funding fees:
As long as the market remains long, you can earn funding fee income from long users daily.
5. Close position, repay, and take profits:
When you decide to end the arbitrage, close the ETH position and repay the loan. After deducting transaction fees and interest, the remainder is your net profit.
(Translation continues in the same manner for the rest of the text)A: Of course. XT's pledge lending feature is simple to operate, with low interest rates and flexible repayment, making it very suitable for beginners to try low-risk arbitrage. It is recommended to start with small amounts, first familiarize yourself with the process, and then gradually expand the scale of operations.
Q: What are the potential risks of using cryptocurrency lending for arbitrage?
A: There are two main risks: first, the price volatility of the collateral may cause the position to approach the liquidation line, and second, the funding rate of perpetual contracts may change unfavorably. It is recommended to maintain a healthy collateral ratio and always pay attention to market fluctuations, adjusting positions in time to control risks.
Q: Can I repay XT's pledge lending in advance?
A: Yes, but it depends on the loan type. Current lending supports immediate repayment without penalty; for fixed-term lending (such as 7 or 30 days), early repayment may incur penalties, so it is recommended to choose an appropriate term based on your needs.
Q: Do these arbitrage strategies require high trading skills?
A: No. The arbitrage methods introduced in the article are very clear and easy to understand, and can be operated step by step. Moreover, the XT platform itself is user-friendly and suitable for beginners. However, it is recommended to continue paying attention to market dynamics, and the returns will be more stable after acquiring some basic knowledge.
