Summary of "Crypto Arbitrage Trading Tutorial (EASY Money in Crypto?)"

The video presents two main crypto arbitrage trading strategies designed to generate yield with minimal or no directional price exposure:

Concept: Exploit price differences between the spot market and futures contracts of the same asset.
How it works:
- Buy the asset on the spot market (long position).
- Simultaneously sell the futures contract (short position) for the same amount of the asset.
- The futures price is usually higher than the spot price due to market expectations, creating a spread.
- Profit is locked in by capturing this spread as the futures and spot prices converge at contract expiry.
Example: Buy 1 BTC at $100,000 spot and sell 1 BTC futures at $101,000, locking in a 3.73% yield over 6 months (~6.88% APR).
Risks and considerations:
- Leverage on the short futures side (default 3x on OKX) can cause liquidation if price moves violently.
- Use cross margin to efficiently allocate equity between long and short legs.
- Ensure exact matching of amounts on both legs to maintain delta neutrality.
- Yield is relatively stable but lower compared to directional holding of crypto.
Platforms: OKX and Binance offer integrated arbitrage trading systems that allow simultaneous execution of both legs.

Concept: Capture yield from the funding fees paid in perpetual futures markets, which keep futures prices aligned with spot prices.
How it works:
- Take a delta-neutral position by going long on the spot market and short on the perpetual futures market for the same asset amount.
- If the funding rate is positive (which it usually is for major assets), shorts receive funding payments from longs.
- This creates a yield from the funding fees without directional price risk.
Additional yield:
- For some assets (e.g., ETH, Solana), the long spot position can earn staking rewards, increasing overall yield.
Risks and considerations:
- Funding rates fluctuate and can turn negative, causing losses if the short side has to pay funding fees.
- Requires monitoring and exiting trades if funding rates turn unfavorable.
- Initial spread cost when opening the trade may cause a slight initial loss, offset by subsequent funding payments.
Platforms: OKX and Binance provide smart arbitrage bots that automate this strategy, including staking derivatives for earning staking rewards.

Use cross margin or advanced account modes for capital efficiency.
Match trade amounts exactly on both legs to avoid exposure.
Use platform features like simultaneous leg execution and automated bots to simplify trading.
Monitor funding rates regularly to manage risk in funding arbitrage trades.
Deposit and trading bonuses are available on OKX and Binance, linked in the video description.

Presenter / Source