It's said that trading cryptocurrencies requires understanding asset allocation, but many people only know how to chase potential coins and hot trends, neglecting a key issue—mindset.

Anyone who has experience with crypto asset allocation understands that you need aggressive assets to seize opportunities, while also holding defensive assets to stabilize your position. Here, defensive assets don't mean just buying stablecoins and lying flat, but rather strategies that can continuously generate cash flow.

Take interest rate arbitrage as an example; this thing has several particularly attractive features:

**Returns are as reliable as rent.** As long as the interest spread exists, your income keeps flowing steadily, without relying on market conditions. You earn during bull markets and still earn during bear markets—that's what stability means.

**Less related to market ups and downs.** Profits come from interest rate differentials, not the asset's own price fluctuations. While others worry about asset depreciation in a bear market, you can feel less stressed because of the continuous interest income. This low correlation can effectively smooth out the volatility of your entire portfolio.

**Constant cash generation.** This income isn't just for show; it can become your "ammunition depot." Whenever the bear market hits bottom, you can use this cash flow to dollar-cost average into your preferred high-risk assets, effectively "saving coins" during downturns.

In actual allocation, putting 20%-30% of your total holdings into this type of strategy can completely change your experience. You won't be anxious because of market stagnation, since you see income accumulating every day. When the market is sluggish, while others wait anxiously, you are steadily increasing your wallet—providing psychological buffer for long-term holding of high-risk assets.

To put it simply, don't treat this strategy as a one-time arbitrage opportunity, but see it as a fundamental module of your personal crypto financial system—a cornerstone that can generate stable cash flow regardless of market conditions. The longer the time horizon, the greater the power of compound interest, and the more apparent the smoothing effect on risk.