Just as my phone vibrated, the exchange pushed a red dot: the funding rate has skyrocketed to an exaggerated level. To be honest, at times like this, it's easiest to get itchy and want to take the other side of the trade, and a thought might pop up: "Don't go where the crowd is"... But right now, I prefer to avoid the volatility first, at least wait for that wave of emotion to catch its breath.

I'm watching large transfers not to guess the top or bottom, but more to see when everyone starts to get collectively excited. Recently, some people have been complaining that on-chain data tools and label systems are lagging, and that they might be manipulated, too. I agree: when the labels change color, I chase after them, but it's often already the tail end of others closing their positions.

So, extreme rates = I’ll be an observer first, set a reminder, and do less trading. If I really want to take the other side, I can, but I have to accept that I might just be taking the hit. Otherwise, I’ll just pass by casually, like taking a walk.