Late at night, I was again scrolling through the chain and seeing large transfers— the more I looked, the more clear-headed I became. Once the funding rate hits an extreme, there are basically only two ways to go: bite the bullet and take the other side, betting it will revert; or simply stay away from the volatility, admitting you don’t have the patience. I used to think, “Going against the move is how to make money,” but more often I ended up getting worn down until I started doubting everything—high rates don’t mean an immediate reversal; they can keep staying high until you’re the first to blow.

Over the past two days, the group has been talking again about stablecoin regulation, reserve audits, and all kinds of little essays about “de-pegging.” Once the emotions kick in, the funding rate is even more likely to be pushed to outrageous levels. My approach is actually even more minimalist: when I see the funding rate is ridiculous, I first ask myself whether I can actually take it. If I can’t, I reduce my position or don’t touch it—don’t put your sleep on the line. If I really want to take the other side, I’ll only use a small position. If I lose, I’ll just treat it as tuition—so be it. The rest we won’t talk about for now.