Recently, the funding rate has been extremely volatile. My first reaction isn't to "rush in and take the other side," but to ask myself first: can I withstand the swings of this wave back and forth... Frankly, no matter how attractive the rate is, if it blows up once, it's all for nothing. Especially lately, everyone has been talking about staking unlocks and the unlocking calendar, which adds anxiety about selling pressure. When emotions run high, prices tend to move to extremes.

I usually start by checking on the blockchain: for example, I just looked at a perpetual pool, and when the funding rate skyrocketed, the order book was ridiculously thin. On-chain, I also saw a large transfer of 0x7a…c3d moving into an exchange, which made me a bit nervous. Anyway, at times like this, I prefer to reduce my position and avoid the volatility. If I do take the other side, I only do so with a very small amount, earning some fee and then exiting. I go where the price is cheap. Survive first—that's what counts.