Use XT stake lending to earn BTC and ETH: Master three low-threshold arbitrage techniques at once.

Key Points

• XT staking lending provides ultra-low interest rate funding support for arbitrage, and the entire operation is completed within the platform, eliminating the need to transfer coins, resulting in lower risk and greater peace of mind.
• Replace traditional leveraged trading with fixed-rate pledge lending instead of high-interest margin financing, reducing interest costs by more than 90%.
• Arbitrage using perpetual contract funding rates, just borrow BTC or ETH to short, and you can steadily earn passive income daily.
• All three strategies are based on the internal functions of the XT platform, simple and secure, without the need to switch platforms or change wallets, especially suitable for beginners to try.
• By reasonably setting the loan period, paying attention to the capital rate, and making early repayments, one can further enhance arbitrage returns and risk control efficiency. If you could increase your crypto earnings without frequent trading and without taking too much risk, would you be willing to give it a try?

This is the charm of arbitrage - it is not a game of volatile ups and downs, but a way to steadily earn coins through differences in funding rates or market mechanisms.

Many people mistakenly believe that arbitrage has a high threshold, requiring multiple exchanges, cross-platform trading, and real-time monitoring. However, XT's staking and lending service has simplified the arbitrage operation to be completed "within a single platform." You can borrow BTC or ETH at a low interest rate and then carry out arbitrage operations within XT's spot, margin, and perpetual contract markets.

The fixed annualized interest rates for XT staking loans are currently very competitive: BTC as low as 1.23%, and ETH only requires 1.50%. Previously, these arbitrage opportunities were mostly controlled by institutions, but now ordinary users can easily get started.

This article will introduce you to three low-risk, clear-operation arbitrage strategies suitable for beginners and advanced users. More importantly, your funds will stay in XT throughout the process, eliminating the need for transfers, which increases efficiency and enhances security.

Whether you are a beginner new to crypto arbitrage or a trader looking to expand your strategies, these three strategies can be applied immediately to start your journey of passive income with BTC and ETH.

Table of Contents

What is XT Staking Lending? Borrow BTC and ETH at ultra-low interest rates.

Strategy 1: Use XT staking lending instead of leveraged financing, saving 90% on costs.

Strategy 2: Earn daily profits through BTC perpetual contract arbitrage

Strategy 3: Use XT staking lending to capture arbitrage opportunities for ETH perpetual contract funding fees.

Advanced Tips: How to Maximize Your Arbitrage Profits

What is XT Staking Lending? Borrow BTC and ETH at ultra-low interest rates

XT Staking Lending is a convenient financial service launched by XT.com, allowing users to borrow popular cryptocurrencies directly on the platform, such as Bitcoin (BTC), Ethereum (ETH), and USDT. You do not need to sell the coins you hold to temporarily release the value of your funds, retaining long-term positions while gaining immediate liquidity, making it very suitable for arbitrage, rebalancing, or short-term operations.

How to use XT staking and lending? 4 easy steps to get started:

• 1. Staked Collateral Assets

Choose BTC, ETH, or other mainstream tokens supported by the platform as collateral to lock in your borrowing limit.

• 2. Choose the loan currency and term

Choose to borrow BTC, ETH, or USDT as needed, and set the term (flexible borrow, 7 days, or 30 days at your choice).

• 3. Funds arrive instantly

The borrowed coins will be directly credited to your spot account, no waiting, no transfer, available for immediate use.

• 4. No fees for repayment at any time

Early repayment can be made at any time within the term without any additional fees, and the collateral assets will be released immediately after repayment.

XT Latest Lending Rate (Updated on July 16, 2025)

The Four Major Advantages of XT Staking and Lending

• – The interest rate is extremely low, and the cost is highly advantageous.

Much lower interest rates than traditional leveraged trading or DeFi lending, allowing more room for arbitrage and short-term operations.

• Transparent interest rate, calculated hourly

All are fixed interest rates, you borrow for as long as you need, with no hidden fees, and the interest costs are clear at a glance.

• Flexible repayment with no penalty clauses

Early repayment does not incur additional fees, making it especially suitable for short-term arbitrage and low-risk strategies.

• Assets are safely and conveniently managed within the XT platform.

No need to transfer coins back and forth; the staked and borrowed coins are all in the XT internal account, which is safer and easier to manage.

In XT lending, the maximum collateralization rate can reach 80%. Once the warning line is triggered, the system will automatically remind you to add margin; if you do not replenish in time and the collateralization rate continues to rise, when it reaches the liquidation line, the order will be forcibly liquidated (which is commonly referred to as a margin call). This mechanism is actually designed to protect the safety of your assets, while also allowing strategies like arbitrage to be executed in a lower-risk, low-cost environment.

Strategy 1: Use XT Staking Lending instead of Leveraged Financing, Saving 90% in Costs

Using leveraged trading on XT allows you to quickly establish long or short positions, making it a common tool for many short-term traders. However, behind this convenience lies an "invisible killer" - high interest costs. The daily interest rate for leveraged borrowing is typically around 0.2%, with an annualized rate close to 73%. If the holding period is slightly longer, profits can easily be consumed by interest.

Why use XT staking borrowing instead of traditional leverage?

XT staking lending is a very practical alternative. Compared to traditional leveraged borrowing, the fixed annual interest rate for XT lending is much lower (currently 6% annualized for 7-day USDT lending and 7.5% annualized for 30-day lending), allowing you to achieve the same leveraged exposure at a lower cost, significantly enhancing overall yield while reducing potential risks from compound interest.

Overview of the operation process: Step by step guide on how to do it.

• 1. Borrow USDT through XT staking and lending.

Choose a fixed loan term (7 days annualized at 6%, or 30 days annualized at 7.5%), and flexibly select based on your trading plan.

• 2. Buy BTC or ETH on the XT spot market

Using borrowed USDT to purchase BTC or ETH is equivalent to establishing a long position similar to traditional leveraged trading.

XT.com BTC/USDT leveraged trading pair

• 3. Hold + Close Position + Repayment

After reaching your profit target, sell BTC or ETH back to USDT, repay the principal and interest of the XT loan, and the remainder is your net profit—plus the interest cost is much lower than traditional leverage!

Actual Cost Comparison (taking a position for 30 days, $10,000 as an example)

Why choose XT Staking and Lending?

• Lower costs:

Interest expenses have dropped by 90%, allowing for greater arbitrage and reallocation opportunities, which naturally leads to more substantial profits.

• Transparent interest:

Fixed annualized + interest calculated hourly, with no hidden fees, and no need to worry about interest "compounding more and more."

• Clear and transparent risk control:

The maximum staking rate can reach 80%, and you will be automatically reminded to add margin when the warning line is triggered; if it reaches the liquidation line, the system will execute forced liquidation to ensure the safety of the borrower and the platform.

• Suitable for various strategies:

Whether it is swing arbitrage, low-frequency trading, or short to medium-term positions (more than 2 - 3 days), a more stable and low-cost execution method can be found in XT lending.

Strategy 2: Arbitrage Through BTC Perpetual Contracts to Earn Daily Returns

For users who do not want to sell their altcoins and wish to obtain stable passive income, BTC perpetual contract funding rate arbitrage is a very good choice. By using XT staking and lending, you can borrow BTC at a low interest rate and earn stable daily returns in XT's BTC-denominated perpetual contract market.

How does ### BTC perpetual contract arbitrage make money?

When the market is bullish, users who go long usually have to periodically pay funding rates to those who go short. You just need to borrow BTC through XT and open a short position to regularly receive these funding fees. Throughout the process, you don't need to pay attention to market fluctuations; as long as the funding rate is positive, you can continue to earn passively.

Follow the steps below to get started easily:

• 1. Stake your altcoins or stablecoins:

Stake mainstream altcoins such as ETH, SOL, XRP, or stablecoins like USDT, USDC on XT.com to obtain BTC lending limits.

• 2. Borrow BTC through XT staking lending:

Choose the appropriate loan term, currently the 30-day fixed interest rate for BTC is 1.55% per annum.

• 3. Open a short position:

Immediately sell the borrowed BTC in the BTC-denominated perpetual contract market on XT to establish a short position.

XT.com BTC/USD coin-denominated perpetual contract trading pair

• 4. Collect funding fees:

As long as the funding rate is positive, you can receive passive income every 8 hours.

• 5. Close Position + Repayment + Take Profit:

When preparing to end the strategy, close the position on BTC, repay the loan, and the remaining amount is your net profit from the funding fee minus interest and handling fees.

Practical Earnings Example:

Calculation explanation: Daily net profit = (F × P × Q) − (I × P × Q); Total net profit = [(F − I) × P × Q × T] − Handling fee

• F = Daily funding rate (for example, 0.01% = 0.0001)
• P = BTC current price (for example $ 118, 000)
• Q = Position size (e.g. 1 BTC)
• I = Daily borrowing interest rate (APR ÷ 365, for example, 1.55% ÷ 365 ≈ 0.0000425)
• T = Loan Days
• Fee = Round trip fee (e.g. ~$ 118)

The core advantages of BTC perpetual arbitrage:

• Market Neutral Strategy:

No need to fear market fluctuations; as long as the funding rate is positive, you can continue to earn.

• Sources of passive income:

As long as you maintain a vacant position every day, you can steadily collect coins without frequent trading.

• Extremely low cost:

The BTC borrowing rate of XT is much lower than that of external platforms, making the strategy more cost-effective.

• Very suitable for altcoin holders:

You don't have to sell your coins to earn arbitrage profits by borrowing BTC through staking.

Strategy 3: Use XT Staking for Borrowing to Capture ETH Perpetual Contract Funding Fee Arbitrage Opportunities

This strategy is similar to the BTC arbitrage method mentioned earlier, but the ETH coin-based perpetual contract market usually experiences greater volatility, so timing and monitoring funding rates become particularly important. Through XT's low-interest ETH lending service, you can continuously earn daily profits in a market with a bullish trend and positive funding rates.

How does arbitrage work for ### ETH?

Similar to BTC perpetual contracts, when the ETH/USD coin-margined contract market is bullish, long users will regularly pay funding fees to short users. You only need to borrow ETH through XT and open a short position to collect this portion of income daily.

The steps are very simple, just follow along:

• 1. Use altcoins or stablecoins as collateral:

Mortgage mainstream altcoins like SOL, XRP, BTC on XT.com, or stablecoins like USDT, USDC to obtain borrowing limits.

• 2. Borrow ETH through XT staking lending:

Choose an appropriate loan term. XT currently offers ETH lending services with a minimum annual interest rate of 1.5% (options available for 7 days / 30 days).

• 3. Open a short position:

Directly sell the borrowed ETH in the ETH coin-based perpetual contract market on XT to establish a short position.

XT.com ETH/USD Coin-Margined Perpetual Contract Trading Pair

• 4. Collection of funding fees:

As long as the market remains bullish, you can earn funding fee income from long position users every day.

• 5. Closing positions, repaying, taking profits:

When you decide to close the arbitrage, close the ETH and then repay. After deducting the transaction fees and interest, what remains is your net profit.

Daily Earnings Example:

Note 1: Assumption conditions

• Position Size: 10 ETH
• Current price of ETH: $ 3, 100
• Daily funding rate: 0.01% (i.e. 0.0001)
• Transaction fees not included
• 7-day borrowing refers to returning and re-borrowing after 7 days, rolling 4 times to simulate a 30-day cycle.

Note 2: Calculation formula

• Daily Net Income = (F × P × Q) − (I × P × Q)
• Total Net Profit = [(F − I) × P × Q × T] − Fees

Among them:

• F = Daily funding rate (e.g., 0.01% = 0.0001)
• P = Current price of ETH (e.g. $ 3, 100)
• Q = Position size (for example 10 ETH)
• I = Daily borrowing interest rate (APR ÷ 365, for example 1.5% ÷ 365 ≈ 0.0000411)
• T = Loan duration in days (e.g., 7 or 30)
• Fee = Total transaction fee (for example, the bilateral fee for 10 ETH is approximately $120)

ETH Advantages of perpetual arbitrage strategies:

• Daily earnings are reusable:

As long as the market trend is bullish, you can earn profits every day.

• Low operating costs:

The borrowing rate for ETH is extremely low, which increases the arbitrage opportunity.

• Suitable for intermediate users:

Suitable for advanced traders who are sensitive to market fluctuations and can regularly monitor funding fees.

Advanced Suggestions: How to Maximize Your Arbitrage Profits

Want to truly make the arbitrage strategy mentioned earlier effective? You must master these tips! They can help you reduce costs, increase returns, and manage risks well.

Loan term selection

• – If you plan to complete arbitrage in a short time, prioritize using 7-day borrowing, which incurs the least interest expense.
• – If you expect to hold an arbitrage position for the long term, choosing a 30-day loan is more suitable as it can lock in a lower fixed interest rate.

Collateral Asset Recommendations

• Choosing cryptocurrencies with a high collateralization rate, such as ETH and SOL, can increase your borrowing limit.
• Diversify your collateral portfolio to reduce the risks associated with the volatility of a single cryptocurrency.

Funding Fee Monitoring

• The funding fee is updated every 8 hours. It is recommended to check regularly to seize opportunities for positive returns.
• Set up funding fee reminders to respond promptly to market fluctuations.

Key Points of Risk Control

• Control the collateral ratio well, try to keep it within a safe range, and avoid approaching the liquidation line.
• Set a stop loss for your contract position to prevent significant losses from sudden market fluctuations.

Repayment Strategy

• It is recommended to repay the loan as soon as possible after the arbitrage ends, which can effectively reduce interest costs and improve net income.

What to do next?

The staking and lending feature of XT allows traders of different experience levels to easily start earning stable and secure passive income. Whether you are a beginner or have some experience, you can maximize the efficiency of your funds through these beginner-friendly, lower-risk arbitrage strategies without the need to transfer assets or operate on multiple platforms.

The current annualized interest rate for BTC is as low as 1.23%, and ETH is only 1.5%. XT.com offers very competitive financing solutions in the industry. Combining the operational skills introduced in this article, you can now take advantage of the price and funding differentials within the platform to start your arbitrage profit journey.

Go to the XT staking and lending page now, choose the cryptocurrency and term you want to borrow, and put these strategies into action to make your assets work!

Frequently Asked Questions: About XT Staking, Lending, and Arbitrage

Q: Can beginners use XT staking and lending for arbitrage?

A: Of course. The staking and lending feature of XT is easy to operate, has low interest rates, and flexible repayment options, making it very suitable for beginners to try low-risk arbitrage. It is recommended to start with a small amount, 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 fluctuations of the collateral coins may lead to positions approaching the liquidation line; second, the funding rate of perpetual contracts may change unfavorably. It is recommended to maintain a healthy collateral ratio and to keep an eye on market fluctuations, adjusting positions in a timely manner to control risk.

Q: Can I repay the pledged loan of XT in advance?

A: Yes, but it depends on the type of loan. Demand loans support borrowing and repaying at any time without penalties; early repayment of fixed-term loans (such as 7 days, 30 days) may incur penalties, so it is recommended to choose a suitable term based on your needs.

Q: Do these arbitrage strategies require high trading skills?

A: No need. The arbitrage methods introduced in the article are very clear and easy to understand, and you can follow the steps to operate. At the same time, the XT platform itself is very user-friendly, suitable for beginners. However, it is recommended that you continuously pay attention to market dynamics; after acquiring a certain level of foundational knowledge, your earnings will be more stable.