Crypto Cash Flow: What's Happening to the Old Money-Making Trick?
The crypto world is seeing a big change. A once-popular way to make money is fading. This method, called the cash-and-carry trade, involved buying Bitcoin right away and selling futures contracts. The idea was to profit from the price difference. But now, this strategy is not working as well.
Why is this happening?
- Tighter spreads
- Better market access
The Chicago Mercantile Exchange (CME) used to be the go-to place for Bitcoin futures. But now, Binance has taken the lead. This shift shows how the crypto market is evolving.
The cash-and-carry trade was a reliable way to make money. But now, it's signaling a deeper change in the market. This could mean that the crypto market is becoming more efficient. It could also mean that old strategies are no longer effective.
Why is this shift important?
- The crypto market is maturing
- New strategies are needed
- Staying informed about market trends is crucial
The crypto market is always changing. What worked yesterday might not work today. This is why it's crucial to stay up-to-date. By understanding these changes, investors can make better decisions. They can also avoid losing money on outdated strategies.