When the funding rate hits an extreme, I start to get a bit cautious. To put it simply, everyone is just pushing to one side, and in the end, it's not me making money from you, but the exchange profiting from us. Should I take the other side? I usually look twice: Is the contract position also exploding, and is there anyone really taking the spot? If it's just the rate soaring and no volume in the spot, I’d rather avoid the volatility, even if it means earning less; only if I see the spot absorbing buy-up and the positions still increasing would I consider taking a small position as the counterparty. If I lose, I’ll just take it as a lesson for buying, don’t force it.

By the way, I recently thought of those “economic collapse points” in blockchain games—when inflation kicks in and studios start rolling out new projects, the coin price spirals downward. No matter how tempting the rate is, it can’t save the situation, and the data will be exposed at a glance.

What I fear most isn’t losing money, but knowing I’m gambling on emotions while pretending to be strategizing. Anyway, I’d rather wait until the rates return to normal before trading; it’ll keep my mindset much better.