What Is an Arbitrage Bot? Types, Real Costs, How to Choose
Search the term and you get a wall of dashboards, all promising the same thing. Yet almost none of them tell you which kind of arbitrage bot they actually are. That matters more than the marketing suggests. A bot that hunts price gaps between two exchanges and a bot that collects funding payments on a […]
AI Arbitrage: How It Powers Crypto Funding Rate Arbitrage
AI arbitrage most often means something else entirely. Usually it means using AI tools to resell services at a markup, or to scan retail sites for price gaps. Applied to crypto funding rate arbitrage, the AI arbitrage term means something different. It means a few concrete technical jobs. AI pulls in data faster than a […]
Why Crypto Funding Rates Spike During Bull Runs
Watch funding rates during any real rally and you will notice a pattern. Why crypto funding rates spike during bull runs comes down to a simple imbalance: far more traders want leveraged long exposure than want to take the other side. That imbalance is not random. It follows the same behavioral pattern every cycle, and […]
What Is a Funding Rate in Crypto?
If you have opened a perpetual futures position and noticed a small percentage labeled “funding rate” on your screen, you have probably wondered what it actually does. A funding rate in crypto is a periodic payment exchanged directly between traders holding long and short positions, and it exists for one specific reason. Perpetual futures contracts […]
What Is Crypto Funding Rate Arbitrage? Full Guide
If you’ve spent any time around crypto trading desks or Discord servers full of quant traders, you’ve probably heard someone mention “funding arbitrage” as a way to earn steady returns without betting on price direction. It sounds almost too simple: hold two offsetting positions, collect a payment every few hours, done. The mechanism really is […]