When the funding rate hits an extreme, I get a bit conflicted: should I go for the opposite side to pick up cheap trades, or just stay away and wait for it to calm down? Honestly, I lean more towards the latter… because extreme rates often come with volatility that says “one more push and it’ll explode,” and if I do take the opposite side, I need to keep my position small and plan my stop-loss in advance, otherwise I might earn the trading fees but lose it all back in a wave of volatility.

Recently, there’s been talk about increased taxes and tighter or relaxed compliance in certain regions, which seems to have a pretty big impact on deposit and withdrawal expectations. When everyone’s sentiment shifts, rates tend to become more extreme. Anyway, my current approach is: avoid getting too involved with the main position, keep some small funds as “side missions” to test, make sure the costs are clear, don’t fight it hard, and just stick to that for now.