Introducing Perptual Futures to you! The secret to getting rich overnight.

In the crypto world, a day is like ten years in the human realm. This phrase has led countless people to rush into the futures market with the fantasy of "overnight success," only to ultimately become the "fuel" for the exchanges. Today, I will strip away the glamorous exterior of futures in the most straightforward way, so you understand: you are focused on the opportunity, while the exchange is focused on your capital.
🎲What is Perptual Futures? The "everlasting version" of futures.
Perptual Futures, in essence, is a betting agreement with no expiration date. It is like you and the market "betting" on whether the future price will rise or fall. It's like a "futures" sibling, but more exciting, with no "expiration date", allowing you to keep betting indefinitely.
👉 For example:
You predict the price of watermelon: you can "buy up" or "buy down".
If you buy an uptrend, you believe that the watermelon will rise from 1 yuan to 2 yuan. You first "agree" to buy at 1 yuan, and when it rises to 2 yuan, you sell it, making a profit of 1 yuan difference.
If you want to short sell, you think the watermelon will drop from 1 yuan to 0.5 yuan. First, you borrow a watermelon and sell it immediately for 1 yuan, then buy it back when it drops to 0.5 yuan to return it. By selling and buying this way, you make a profit of 0.5 yuan.
No matter if the market rises or falls, you have a chance to make money as long as you guess the right direction.
Spot trading is something everyone knows, for example, if a watermelon costs 10 yuan, you have to pay 10 yuan to buy one.
You can use "leverage" for contracts. If you use 10x leverage, you only need to put out 1 dollar (this is called margin), and you can leverage a watermelon worth 10 dollars!
😈 When you earn: The watermelon rises to 11 yuan (up 10%), you use 1 yuan of principal, earn 1 yuan, and the return on investment is 100%!
💀 When losing money: Watermelon drops to 9 yuan (down 10%), your 1 yuan principal is completely wiped out (liquidated).
Leverage can help you earn quickly, but it can also lead to quicker losses. It amplifies your profits, but it amplifies your risks even more.
It often has a phenomenon called a "wick", where the price suddenly drops and then comes back, or suddenly spikes and then comes back. Your principal is only this much. As long as the price touches your liquidation price even for a moment, it will instantly trigger a liquidation.
🧠 3 Life-Saving Concepts You Must Understand
Contracts are divided into two modes, one called cross margin and the other called isolated margin.
🛡️Full margin means imagining your margin (principal) as all the money in your wallet, so your margin is relatively large and less likely to be liquidated. Since you have substantial principal (the entire wallet's money is supporting you), you can withstand greater price fluctuations. For example, if one order incurs a floating loss, the profits from other orders or the unused money in your wallet can be used to cover it, allowing you to hold on longer. However! If it blows up, it all blows up! If the market trend goes completely against you, resulting in liquidation, then all the money in your entire contract account (the whole wallet) will be lost at once.
🎯 Isolated margin means you take a fixed amount of money (for example, 100 yuan) from your total wallet as the principal for a single bet. Whether you win or lose this round, it only counts within that 100 yuan. Even if you perform poorly and get liquidated, you will only lose that 100 yuan you set aside. The rest of the money in your wallet remains safe and sound. The downside is that the principal is small, making it easy to get liquidated. Since you only took out 100 yuan to play, any slight price fluctuation in the opposite direction could cause your 100 yuan to be unable to withstand it, leading to forced liquidation (getting liquidated) easily. This is suitable for beginners to test the waters or for placing multiple bets in different directions at the same time.
Another concept is the funding rate. The funding rate is one of the most confusing concepts in Perptual Futures, but its core logic is actually quite simple.
Imagine you are in a casino, at a betting table for "Guess Up or Down": those betting "Up" (Bulls) sit on one side, while those betting "Down" (Bears) sit on the other side. Normally, there should be approximately the same number of people on both sides, making the betting game very balanced.
But suddenly, there was good news, and the vast majority of people rushed to bet on "rising". At this time, the casino owner discovered a problem:
If the price keeps rising, those betting on "up" will make a fortune, while those betting on "down" will lose everything and exit. Over time, no one will play "down" at the betting table, and this game will collapse.
What should I do?
The casino owner came up with a solution: he charged a small "balance fee" to the majority side (those betting on "up") and then distributed it to the minority side (those betting on "down").
Why do this?
1. Encourage the weak: Give a subsidy to those who bet on "falling" so that they won't leave and continue to play.
2. Reminder to the strong: Tell those who bet on "up": "You are too enthusiastic, you need to calm down, holding this direction has a cost."
This "balance fee" refers to the 【funding rate】 in the contract.
How does the funding rate work in the contract?
If there are far more bullish (long) participants than bearish (short) participants in the market, then the bulls have to pay the bears. Conversely, if there are far more bearish (short) participants than bullish (long) participants, then the bears have to pay the bulls. Typically, settlements occur every 8 hours (for example, at 0:00, 8:00, and 16:00 UTC).
How are the rates determined?
It is automatically calculated by a formula, mainly looking at the difference between the contract price and the spot price, as well as the ratio of long and short positions in the market. You don't have to calculate it yourself; the exchange will display it.
If the funding rate is consistently positive and very high, it indicates that the market is extremely bullish and everyone is going long; you need to be cautious as a correction may be imminent. If the funding rate is negative, it suggests that the market is very bearish and everyone is going short, which could signal a potential rebound.
So, the next time you see the funding rate, you can understand it as the "market equilibrium tax" or "emotional overheating cooling fee"!
🚨How to profit from it? If you still want to try, remember these 6 iron rules: surviving is more important than earning.
First, do not hold onto positions.
Holding onto positions is the first step where everyone fails in the market. You think the market will come back? Yes, it has come back a few times, but that one time it doesn’t can reset your life. I've seen too many so-called veterans who have been in the game for 10 years, and in the last wave of the market, they ended up with nothing. It's not that they don’t know how to trade, but they are unwilling to admit defeat. The result? They are never qualified to talk about trading again.
Remember, the market is not afraid of your stop-loss; it is afraid of your stubbornness. A stop-loss is not a sign of weakness; it is a way to give yourself a chance to survive.
Second, high-frequency trading
Some people feel itchy all over if they don't place an order in a day, even when the market hasn't moved; their hands move first. You think you're trading, but in fact, you're looking for trouble. A true professional trader may only make a few trades a day in short-term trading, and only two or three trades a week in long-term trading, but each trade is calculated to the bone. The higher the frequency, the denser the mistakes, and in the end, it all relies on emotional trading. To put it bluntly, it's not about losing money; it's about self-consumption. The market loves traders like you who can't keep their hands still.
Third, addiction to monitoring the market.
Looking at the market every day is not diligence, but anxiety. You think you are in control of the market, but in fact, you are being led by the market trends. Those who truly understand the rhythm set their stop-loss and then turn off the screen. The market movements are not determined by your attention, and profits are not created by your thoughts. The longer you stare, the more chaotic your emotions become, and the shakier your hands get. In the end, your trades rely on impulse, not logic.
Fourth, always manage risk with a backup warehouse.
Suggested main position: Allocate the spare position at a ratio of 7:3 or 8:2, and only add to the position when there is a trend reversal or rebound signal, with each addition not exceeding 1/3 of the spare position. After making a profit, first fill the spare position, and never borrow from it to increase leverage. With it as a safety net, you can avoid a total liquidation and maintain a stable mindset, allowing you to survive longer in the market.
Fifth, avoid high leverage.
High leverage is the number one culprit of contract liquidation! Don't touch leverage above 10 times. With 5 times leverage, a 20% drop leads to liquidation, while with 10 times, it only takes a 10% drop. Staying alive gives you a chance.
Sixth, technical analysis is the only reliance.
Fundamentals: Focus on interest rate cutting cycles and policy trends (such as the market after Trump's election).
Technical model: K-line patterns (head and shoulders bottom, box structure), indicators (MACD, moving average system).
Position Management: Each order's stop loss should not exceed 5% of the principal, and the profit and loss ratio should be at least 1:1.5.
Recently, the black swan event on October 11 caused an epic liquidation of 20 billion USD, resulting in 1.6 million people being tragically affected.
The price of BTC dropped from 122,000 USD to a low of 102,000 USD, with a maximum decline of over 16%; the price of ETH fell from 4,340 USD to a low of 3,400 USD, with a maximum decline of over 22%; mainstream cryptocurrencies like Solana (SOL) and XRP have seen declines approaching 30%. It is normal for altcoins to drop more than 90%. Among those who used leverage or engaged in contract trading, 98% have been liquidated. Many people who were showing off profit screenshots the day before have suddenly gone silent the next day, not even updating their moments.
The crypto world is not short of opportunities, but rather of people who can last long.
Before you press the "Open Position" button, ask yourself:
Are you controlling the contract, or is the contract controlling your greed?
Exchanges don't need to defeat you, they just need to wait for you to self-destruct.