What Are the Typical Costs of Carry Associated with Holding Cryptocurrencies?

The costs of carry for cryptocurrencies are different from physical commodities. While there are no storage costs in the traditional sense, there are other factors to consider.

These can include the costs of securing the assets, such as hardware wallets or custody services. Opportunity cost is another significant factor, representing the potential returns lost from not investing the capital elsewhere.

Finally, financing costs can be a factor for traders who use leverage to hold their positions. These costs collectively contribute to the premium or discount seen in futures prices.