When the funding rate goes to an extreme, my first reaction isn’t to “rush in and take the other side,” but to ask myself: is this wave just emotion running too hot, or is someone deliberately forcing the narrative? Put simply, the other side isn’t making money by being right or wrong—they’re the ones who can endure the volatility and survive those few needles that get them squeezed out. Most of the time, I choose to stay out of it: reduce my position, wait until the funding rate is no longer so outrageous. Earning a little less feels better than being swept back and forth.

Recently, the back-and-forth over privacy coins and coin mixing, all those compliance gray areas, has been pretty intense—same kind of taste, really: everyone wants “certainty,” but the market will only hand you even bigger swings. There are lots of tutorials, but I actually prefer the ones that explain the liquidation route, where the funding rate comes from, and the exchange rules in more detail. At least that way, you can avoid a few traps… For now, that’s it.