Subscribe to stay informed about our latest updates and industry news!
Learn how EURK plans to revolutionize the stablecoin market and provide a reliable digital currency solution.
Follow us:
© 2024 Eurk
Digital assets are subject to a number of risks, including price volatility. Transacting in digital assets could result in significant losses and may not be suitable for some consumers. Digital asset markets and exchanges are not regulated with the same controls or customer protections available with other forms of financial products and are subject to an evolving regulatory environment.
Disclaimer: The information contained in or provided from or through this website is not intended to be and does not constitute investment, financial advice, trading advice, or any other type of advice.In no event will EURK or its affiliates, or any of its or their respective service providers, be liable to you or any third party for any use, interruption, delay or inability to use the software, lost revenues or profits, delays, interruption or loss of services, business or goodwill, loss or corruption of data, loss resulting from system or system service failure, malfunction or shutdown, failure to accurately transfer, read or transmit information, failure to update or provide correct information, system incompatibility or provision of incorrect compatibility information or breaches in system security, or for any consequential, incidental, indirect, exemplary, special or punitive damages, whether arising out of or in connection with this text, breach of contract, tort (including negligence) or otherwise, regardless of whether such damages were foreseeable and whether or not we were advised of the possibility of such damages.
We use cookies to improve your experience. To find out more, please read our Cookies Policy. By clicking “Accept”, you consent to our Cookie and Privacy Policy. Or you may click “Decline”to refuse to consent.
EURK Pilot Test Smart Contract is unavailable for security reasons as of 2nd of April. Therefore, EURK will not be available for buying, selling, and exchanging until further notice.
The problem is being resolved by our team of technicians.
We sincerely apologize for the inconvenience caused.
For assistance and/or to report any incident, please contact our dedicated support team at [email protected]
Please stay tuned and await further updates.
EURK Team
Crypto funding rates are the interest rates that are charged on perpetual or futures contracts that are traded on cryptocurrency derivatives markets. This lets traders bet on the price of cryptocurrencies without actually owning them.
Crypto exchanges are not limited to buying and selling. It is necessary to say that there are many details, such as futures, continuous futures, leverage systems, collateral issues, and liquidation.
You can check “liquidity in stablecoins” and “crypto exchange rates” to learn more about liquidation and crypto exchanges to better understand funding rates.
Therefore, we will examine crypto funding rates in detail for you. Join us as we analyze its impact and importance, together with the concepts of positive and negative funding rates. Thanks to our reviews, you will have all the details about funding rates for crypto. Let's start!
We see that the same concept of funding rates found in traditional financial transactions is also encountered in transactions with cryptocurrencies. There are some stabilizers made during continuous future transactions. One of these stabilizers is funding rates in crypto.
To consider in more detail, there is a leveraged system during perpetual futures. For this reason, there is excessive inflation and a change in prices. If there is an excessive departure from the current price or value, funding rates come into play.
To make a shorter definition, they are regular payments paid to traders for traders who trade according to the large differences between continuous futures prices and spot market prices.
Crypto funding rates are of great importance in order to prevent permanent deviations as a result of fluctuations. However, the situation may not always go the way we want. When a negative situation is seen in the leveraged system, the same situation will occur in the opposite direction.
In a positive situation, it is the process of paying funds to investors in the long position for a position that is in an upward trend against investors in the short position. Since the transaction has a positive effect, the concept is known as positive funding rates.
If you do not want to take risks, you can invest in stablecoins. Stablecoins indexed with real currencies are one of the most risk-free investment instruments.
Especially EURK, which is indexed with the euro currency, is a type of euro stablecoin that is popular worldwide. The dependable crypto-friendly digital bank CBQ offers EURK, which has a 1:1 ratio with the euro. Therefore, it provides stable value and security.
We have explained in detail above the funding rates in crypto. In cases where there is an upward trend, the situation involving the fund payments made by investors in the long position to investors in the short position is called positive funding rates.
When the opposite is the case, the payments made by the investors in the short position to the investors individuals in the long position during a bearish position are the negative version.
In the detailed analysis mentioned above, we have examined the fact that this is a situation that occurs during continuous futures trading. Therefore, which side you are on and how the transaction is realized will shape the gain-or-loss situation for you.
If you have a risk-averse structure, it would be more logical to turn to investment instruments available as stablecoins.
In the first transactions of new investors, it may be wrong for new investors to enter transactions that contain leverage systems such as continuous futures and have many complex details.
For this reason, in the first transactions, stablecoins indexed to physical currency values on a pair with real currencies will be a risk-free investment tool for you. EURK is a type of euro stablecoin.
The high rate of crypto funding is being called into question. As a result of the excessive rise and fall of the price due to the effect of leverage during future transactions, the funding event comes into play.
It is the fee that needs to be paid to stabilize and is given or received according to a certain account. Which position you are in and in which direction the increase is directly affected Therefore, the high rate is the rate that occurs in high decreases and increases.
It is seen that futures are generally found in three main categories.
These are transactions with metals such as copper, silver, steel, and gold.
It covers transactions made with international currencies.
These are transactions made with various assets, indices, and expected future value. It would not be wrong to say that cryptocurrency finds a wider place in this category. For example, the euro-based EURK euro stablecoin can be shown as an example.
Funding rates are one of the most important factors. It has an important role in crypto investment types, especially in traditional investments. It provides balance adjustments in continuous futures transactions and high gains and losses in the leveraged system.
Therefore, the effect of funding rates is also important. It acts as a mechanism to stabilize the leverage effect that occurs in continuous future transactions. Therefore, it undertakes the task of absorbing excessive price inflation.
If there is positive funding, investors in the long position earn a profit, while investors in the short position earn income in negative situations. If you are a long-term trader who has always traded futures, collateral, leverage, and funding rates will be important to you.
Therefore, the continuation of the transaction in the positive direction you want reveals your need for funding. Short traders will balance the balance by paying you. If a risk-free investment is desired, stablecoins can be preferred instead of perpetual futures.
However, it would not be wrong to say that the profit rate is lower. Although the profit rate is low, the reason why the loss is almost negligible is that it is indexed to real money values. If we take the euro as an example, you will never experience high losses as the euro will never be zero in value.
Even if you do, your cryptocurrency value will be equal to the euro. Whatever the value of the euro, your investment is seen as having the same value. The euro-based and popularly used stablecoin type is EURK.
Funding rates require continuous futures or forward transactions. Leveraged systems, collateral, margins, and some other issues will need to come into play. It is used as a stabilizing element to prevent liquidation. The same applies to crypto exchanges.
During continuous future transactions in crypto assets, help can be obtained from supervisory mechanisms such as blockchain technology. The system that accounts like a digital ledger is formed by blocks. Therefore, cryptocurrencies have a direct relationship with blockchain.
Funding rates are traded between traders to keep market prices stable and make sure positions are in line with how the market operates. When the derivative contract price is higher than the spot price, the funding rate is positive.
When it is lower than the spot price, the funding rate is negative. By carefully planning your transactions around funding intervals, you can either avoid crypto funding rate payments or use them to your advantage. Timing can lower costs and open up chances for arbitration.
If you don't want to take the risk of timing and possible price volatility, EURK is a reliable stablecoin option. Buy EURK and enjoy fast, easy, and secure transactions with a constant, stable value.
You can benefit from a wide range of crypto payment advantages, from e-commerce payments and cross-border payments to global payments with EURK. Contact us and start to benefit from stablecoin advantages!
