As the cryptocurrency market fluctuates, transaction fees will also change. For mainstream currencies such as Bitcoin, their transaction fees are relatively stable, usually remaining at 0.001. However, when the market price rises, the total amount of fees under the fixed rate naturally rises due to the increase in the market value of the position; conversely, when the price falls, the total amount of fees will also decrease. This is because the fees are calculated based on the market value of the position and the rate. Mainstream currencies such as Bitcoin are usually settled every 8 hours, while emerging currencies that are launched within a year are settled every 4 hours.

For some new currencies on the market, the situation is different. The transaction fees of these new currencies may fluctuate significantly due to market fluctuations. For example, after some new currencies have experienced a significant price increase, their transaction fees may increase by 20 times or even 40-50 times. Even if investors buy at a low price, when the market fluctuates sharply, due to the deduction of fees, profits may be eroded, or even losses may occur. Therefore, for these small currencies, contract trading is usually more suitable for short-term swing operations rather than long-term holding. Once the price rises, investors should consider clearing their positions and moving into the spot market. In addition, contract trading performs better in a unilaterally rising or falling market, while it is more difficult in a sideways market.

When trading cryptocurrency contracts, it is crucial to understand the calculation and influencing factors of the funding rate. The funding rate is an important indicator in the perpetual contract market, which reflects market sentiment and traders' long and short divergences. The calculation of the funding rate involves the notional position value and the funding rate at settlement, while the notional position value is related to the mark price and the size of the contract held. Changes in the funding rate can provide investors with effective insights into market sentiment and long and short forces, help investors identify potential turning points in the market, and optimize trading strategies accordingly.

In summary, when trading cryptocurrencies, investors should pay close attention to market dynamics and changes in funding rates in order to better grasp market trends and formulate reasonable trading strategies. At the same time, attention should also be paid to risk management to avoid unnecessary losses due to market fluctuations.

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