Are there any specific cryptocurrencies that are more affected by overnight funding than others?

3 answers

• H297_ Vera Alissiya PutriFeb 06, 2024 · 2 years ago
  Some cryptocurrencies are more affected by overnight funding than others. This is because overnight funding refers to the interest rate charged on positions held overnight. Cryptocurrencies with higher volatility and lower liquidity are generally more affected by overnight funding. This is because higher volatility increases the risk associated with holding positions overnight, and lower liquidity makes it more difficult to find counterparties to offset the risk. Therefore, cryptocurrencies like Bitcoin and Ethereum, which are more liquid and less volatile, are generally less affected by overnight funding compared to smaller altcoins.
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• Harakiri HitoMar 17, 2024 · 2 years ago
  Yes, there are specific cryptocurrencies that are more affected by overnight funding than others. Overnight funding is a cost that traders incur for holding positions overnight. Cryptocurrencies with higher overnight funding rates are more affected by this cost. For example, if a cryptocurrency has a high overnight funding rate, it means that traders need to pay a higher interest rate for holding positions overnight. This can make trading these cryptocurrencies more expensive and less attractive for short-term traders. Therefore, it is important for traders to consider the overnight funding rates of different cryptocurrencies before making trading decisions.
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• ARRAug 22, 2025 · 7 months ago
  According to BYDFi, a leading cryptocurrency exchange, overnight funding can have a significant impact on certain cryptocurrencies. The impact of overnight funding depends on factors such as the liquidity and volatility of the cryptocurrency. Cryptocurrencies with lower liquidity and higher volatility are generally more affected by overnight funding. This is because lower liquidity makes it harder to find counterparties to offset the risk, and higher volatility increases the risk associated with holding positions overnight. Therefore, traders should carefully consider the impact of overnight funding when trading cryptocurrencies, especially those with lower liquidity and higher volatility.
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