My Bitcoin perp experiment starts soon with 3x leverage

[CryptoTroubleshooter]

Friends, my upcoming experiment will show budding investors how leveraged perpetual futures work.

I’ll open a position on Bitcoin betting it will rise, and the 3x leverage will triple my profit or loss.

Leverage subjects me to a surprise interest rate called funding rate. It acts like Uber surge pricing when bullish or bearish demand surges.

*** For anyone claiming the rate is predictable, what’s the funding rate on BTC for the next 12 months? ***

I’ll pay interest when buyers are very bullish, and I’ll earn interest when sellers are very bearish.

I intend to show how leverage works, not to profit.

Platform: Hyperliquid
Wallet: Trust Wallet
Asset: Bitcoin
Leverage: 3x
Position size: TBD

[Oshosondy]

If you want to go long term like position holding, it is better you use expiry where no funding rate would be charged or given.

You can see up to 12 months expiry on Binance, Bybit and OKX.

You can also hold your bitcoin on the exchange and no need to convert to USDT before you trade the future position holding.

Make sure you do not change your plan and do not be greedy.

[Alphakilo]

If you want to go long term like position holding, it is better you use expiry where no funding rate would be charged or given.

You can see up to 12 months expiry on Binance, Bybit and OKX.

You can also hold your bitcoin on the exchange and no need to convert to USDT before you trade the future position holding.

Make sure you do not change your plan and do not be greedy.

You made a valid contribution and it goes to say perpetual futures is not adviced for a newbie trader or an emotional trader because, emotional control is a top risk management practice that is very important here even though this is just experimental.

Also some things to bear in mind about funding fees is that, funding rates remain dynamic at every hour, funding fees is a total of the capital you intend to use to trade not even your margin alone, funding fees are very volatile and could drain capital easily even though the essence of funding fees is mainly to maintain the price of perp contract and keep it aligned with the price of Bitcoin in the spot market at any time.

[Oshosondy]

funding fees is a total of the capital you intend to use to trade not even your margin alone

I do not really understand this, but this is not what funding fee is. Funding fee is the money added or deducted to or from the money traders used to open a position at a given time like every 8 hours, 4 hours or 1 hour for the coin derivative price not to have huge price difference from the spot market price.

funding fees are very volatile and could drain capital easily even though the essence of funding fees is mainly to maintain the price of perp contract and keep it aligned with the price of Bitcoin in the spot market at any time.

This is true, but it is more volatile for some altcoins and not that volatile for good coins like bitcoin, just just that position holders can not go for it because over long time like 2 years, small amount of money can accumulate into a big amount of money.

[SquirrelJulietGarden]

You can see up to 12 months expiry on Binance, Bybit and OKX.

You can also hold your bitcoin on the exchange and no need to convert to USDT before you trade the future position holding.

Funding an exchange account, storing the fund there for 12 months is very risky.

Reminder: do not keep your money in online accounts.

Risk starts to exist after you fund your exchange account but by holding your coins there in 12 months, risk increases a lot and Tier 1 centralized exchanges can collapse, have bankruptcies too such as FTX exchange in November 2022.
Bankruptcy of FTX.

Many centralized exchanges died with many different reasons.
https://www.cryptowisser.com/exchange-graveyard/