What have I learned today;
I Finally Understood the Funding Fee after It Drained My Wallet 😓
Traded $ERA token on Binance Futures. I went short, expecting a dip — but boom 💥 it pumped hard, and suddenly:
✍I kept getting funding fee alerts every hour
✍Lost 5+ USDT each hour
✍ My position got crushed, not just by price… but by funding fees
That’s when I realized...
✍ Funding fee isn’t based on when you enter. It’s charged globally at fixed times usually every 8 hours, but some hot tokens like ERA are hourly.
And worse:
✍ When too many people go short, shorts PAY longs — and funding can explode.
🧠 Lesson I Learned:
✅ Always check the funding rate and schedule before trading
✅ Avoid holding shorts on pumping tokens with hourly funding
✅ If funding is high, it can drain your capital even before the price moves!
Now I get why so many traders complain on Binance Square. I was one of them.
You'll understand, just give it a try
