Introducing you to Perptual Futures! The secret to overnight wealth.

In the cryptocurrency world, a day is like ten years in the human realm. This saying has led many people to rush into the futures market with the fantasy of "getting rich overnight," only to ultimately become "human fuel" for the exchanges. Today, I will strip away the glamorous facade of futures in the most straightforward way, so you understand: you are focused on opportunities, while the exchanges are focused on your capital.
🎲What is Perptual Futures? The 'eternal version' of futures.
Perptual Futures, in essence, is a wager agreement without an expiration date. It's like you and the market are "betting" on whether the future price will rise or fall. It resembles a "futures" sibling but is more thrilling, as there is no "expiration date," allowing you to keep betting indefinitely.
👉 For example:
You predict the price of watermelon: you can "buy up" or "buy down".
If you buy long, you think the watermelon will rise from 1 yuan to 2 yuan. You first "agree" to buy it at 1 yuan, and when it rises to 2 yuan, you sell it, making a profit of 1 yuan.
If you want to short, you believe that the watermelon will drop from 1 yuan to 0.5 yuan. You first borrow a watermelon, sell it immediately for 1 yuan, and then buy it back when it drops to 0.5 yuan to return it. In this buy and sell, you make a profit of 0.5 yuan.
Regardless of whether the market rises or falls, you have the opportunity to make money as long as you guess the direction correctly.
Spot trading is something everyone knows. For example, if a watermelon costs 10 yuan, you have to pay 10 yuan to buy one.
You can use "leverage" for contracts. If you use 10x leverage, you only need to put in 1 dollar (this is called the margin), and you can leverage a watermelon worth 10 dollars!
😈 When you earn: Watermelon rises to 11 yuan (up 10%), you used 1 yuan as principal, earned 1 yuan, a return rate of 100%!
💀 When you lose money: The watermelon drops to 9 yuan (a 10% drop), and your 1 yuan principal is completely lost (liquidated).
Leverage can help you earn quickly, but it can also lead to quicker losses. It amplifies your profits, but it also magnifies your risks.
There is often a phenomenon called "spike", where the price suddenly drops down and then returns, or suddenly spikes up and then returns. Your principal will only be like this; as long as the price touches your liquidation price even for a moment, it will instantly get liquidated.
🧠 3 essential concepts you must understand for survival
Contracts are divided into two modes, one called cross margin and the other called isolated margin.
🛡️Full margin means imagining your margin (principal) as all the money in your wallet, so your margin is relatively large, making it less likely to be liquidated. Because your principal is strong (all the money in the wallet is supporting it), it can withstand greater price fluctuations. For example, if one position incurs a floating loss, the profits from other orders or the unused money in your wallet can be used to cover it, allowing you to hold on for longer. But! If it blows, it all blows! If the market trends completely against you, leading to a final liquidation, then all the money in your entire contract account (the whole wallet) will be lost at once.
🎯 Isolated margin means that you take a fixed amount of money (for example, 100 yuan) from your total wallet as the principal for a betting round. Whether you win or lose this round, it only counts within that 100 yuan. Even if you perform poorly and get liquidated, you will only lose that 100 yuan you set aside. The other money in your wallet remains safe. The downside is that the principal is small, making it easy to get liquidated. Because you only took out 100 yuan to play, if the price fluctuates slightly in the opposite direction, that 100 yuan might not withstand it and could easily lead to a forced liquidation. It is suitable for beginners to test the waters or for placing multiple bets in different directions simultaneously.
Another concept is the funding rate. The funding rate is one of the most confusing concepts in Perptual Futures, but its core logic is actually quite simple.
Imagine you are in a casino with a "guess the rise and fall" betting table: those betting "rise" (bulls) sit on one side, while those betting "fall" (bears) sit on the other side. Normally, there should be about the same number of people on both sides, making the betting very balanced.
But suddenly, there was a piece of good news, and the vast majority of people rushed to bet on "rise". At this time, the casino owner discovered a problem:
If the price really keeps rising, those betting on "up" will make a fortune, while those betting on "down" will lose everything and exit. In the long run, no one will play "down" at the betting table, and this game will collapse.
What to do?
The casino owner came up with a method: he charged a small "balancing fee" to the majority side (betting on "rise") and then gave it to the minority side (betting on "fall").
Why do this?
1. Encourage the weak: Give a subsidy to those who bet on "falling" so that they don't leave and continue to play.
2. Reminder to the strong: Tell those who bet on "up": "You are too enthusiastic, you need to calm down, holding this direction has a cost."
This "balance fee" refers to the 【funding rate】 in the contract.
How does the funding rate work in the contract?
If there are far more bullish (long) positions than bearish (short) positions in the market, then the bulls will have to pay the bears. If there are far more bearish (short) positions than bullish (long) positions in the market, then the bears will have to pay the bulls. Usually, settlements occur every 8 hours. (For example, at 0:00, 8:00, and 16:00 UTC)
How are the rates determined?
It is calculated automatically by a formula, mainly looking at the difference between the contract price and the spot price, as well as the ratio of long and short positions in the market. You don't have to calculate it yourself; the exchange will display it.
If the funding rate has been consistently positive and very high, it indicates that the market is extremely enthusiastic, and everyone is going long. You need to be cautious as a correction may be imminent. If the funding rate is negative, it indicates that the market is very pessimistic, and everyone is going short, which could be a signal for a rebound.
So, next time you see the funding rate, just understand it as "market balancing tax" or "emotional overheating cooling fee"!
🚨How to profit from it? If you still want to try, remember these 6 iron rules: surviving is more important than earning.
First, do not hold onto positions.
Holding a position is the first hurdle that everyone faces in the market. You think the market will come back? Yes, it has come back a few times, but that one time it doesn’t is enough to reset your life. I've seen too many so-called veterans who have been in the game for 10 years and ended up losing everything in the last wave of the market. They don’t lack skills; they just can't bear to admit defeat. The result? They are never qualified to talk about trading again.
Remember, the market is not afraid of you cutting losses, but is afraid of you holding on stubbornly. Cutting losses is not being timid; it is giving yourself a way out.
Second, high-frequency trading
Some people feel itchy all over if they don't place an order in a day. Even if the market hasn't moved, their hands start moving first. You might think you're trading, but in reality, you're looking for trouble. A true professional trader may only make a few trades a day for short-term trades, and just two or three trades a week for long-term trades, but each time it's calculated to the core. The higher the frequency, the more mistakes accumulate, and in the end, it all relies on emotional trading. To put it bluntly, it's not about losing money; it's about self-consumption. The market loves people like you who are itching to trade.
Third, addicted to watching the market.
Watching the market every day is not diligence, it's anxiety. You think you are in control of the market, but in reality, you are being led by the market trends. Those who truly understand the rhythm set their stop-loss and then turn off the screen; the market is not something you can just stare at to understand, and profits are not something you can just wish for. The longer you stare, the more chaotic your emotions become, and the shakier your hands get. In the end, your trades rely on impulse, not logic.
Fourth, always manage risk with a backup warehouse.
Recommended main position: Allocate the reserve position at 7:3 or 8:2, and only add to the position when there is a trend reversal or a rebound signal, with each addition not exceeding 1/3 of the reserve position. After making a profit, first fill the reserve position completely, and never use it to increase leverage. With this cushion, you can avoid a total liquidation in one go and maintain a stable mindset, allowing you to survive longer in the market.
Fifth, refuse high leverage.
High leverage is the number one culprit of contract liquidation! Don't touch leverage above 10x. With 5x leverage, a 20% drop leads to liquidation, while with 10x it only takes a 10% drop; staying alive gives you a chance.
Sixth, technical analysis is the only reliance.
Fundamentals: Pay attention to the interest rate cut cycle and policy trends (such as the market after Trump's election).
Technical Models: Candlestick Patterns (Head and Shoulders, Range Structure), Indicators (MACD, Moving Average System).
Position Management: Each order's stop loss should not exceed 5% of the principal, and the profit and loss ratio should be at least 1:1.5.
Recently, the Black Swan event on October 11 resulted in an epic liquidation of 20 billion USD, with 1.6 million people suffering massive losses.
The price of BTC dropped from 122,000 USD to a low of 102,000 USD, with a maximum decline of over 16%; the price of ETH fell from 4,340 USD to a low of 3,400 USD, with a maximum decline of over 22%; mainstream coins like Solana (SOL) and XRP saw declines approaching 30%. It has become normal for altcoins to drop over 90%. For those who leveraged and traded contracts, 98% have been liquidated. Many who were showcasing profit screenshots the day before have vanished the next day, not even updating their social circles.
The crypto world is not short of opportunities; what is lacking are people who can last long.
Before you press the "Open Position" button, ask yourself:
Are you in control of the contract, or is the contract in control of your greed?
Exchanges don't need to defeat you, they just need to wait for you to self-destruct.