When the funding rate spikes through the roof, I’m honestly pretty conflicted. Should I go for the counterparty side and earn that little bit from the funding rate? But if the direction is wrong, the volatility could wipe it all out. If I dodge the volatility, then I feel like I’m missing the opportunity. Anyway, I’m more inclined to observe first—wait about ten-odd minutes, see whether a big order hits the market or drives it up—and then decide whether to place an order.

Recently, I’ve been seeing those large on-chain transfers being interpreted as “smart money” actions, and I find that pretty ridiculous. Sometimes it’s just the exchange moving funds to a cold wallet, and everyone ends up following the trend. Last time I placed an order, it got stuck in the queue and wouldn’t go through—I refreshed and tried again several times before it finally filled. When I looked back, the funding rate had already changed through several rounds.

Forget it—still be steadier. First, look at the AMM curve and how fees are allocated, and don’t easily take the counterparty side.