Are Perpetual Futures Costing You Too Much?

Perpetual futures have become a staple for crypto traders who want to bet on price movements without ever holding the actual asset. However, a new report highlights that these products come with a quiet cost that many retail traders overlook. Positions held over a long period can face cumulative charges that drain capital faster than expected.

These costs appear in the form of funding rates. When traders hold a long position, they often pay a fee to those on the other side of the trade to keep the market price aligned with the spot price. Over a full year, these incremental payments can add up to a loss of 10 percent for the holder, significantly cutting into potential gains.

This trend serves as a warning for investors who treat perpetual futures as a proxy for long term holding. While these instruments are efficient for short term speculation, the ongoing fees create a persistent drag on performance. Traders should look closely at their funding costs before keeping a position open for an extended time.