Carry trading in crypto: Explained

Carry trading is a strategy for buy-sell activities of crypto-assets in which traders invest assets with low-interest rates instead of their own funds. It can be conducted using crypto-to-crypto lending platforms. This way, they can buy assets with high-interest rates, allowing them to earn on the price difference.

If the market experiences significant price volatility or a sudden market downturn, the value of the assets held by the trader could decline, leading to losses. So, it’s mostly recommended to experienced traders rather than newbies