Headlines often highlight massive Bitcoin and crypto futures liquidations, with many blaming retail traders' excessive leverage. While retail-oriented exchanges like Bybit and Binance see high liquidation rates, not all are due to reckless trading. Professional traders also face liquidations, but it doesn't always mean losses or over-leveraging. Futures trading, especially perpetual contracts, offers easy access to high leverage but comes with risks. Traders should avoid relying solely on directional trades and consider strategies like exploiting low-liquidity pairs or cash and carry trades. Funding rate arbitrage, capitalizing on varying rates across markets, can also be profitable. These approaches show that leveraging derivatives wisely can lead to profits even in less volatile markets. However, success requires knowledge, experience, and a strong capital base to navigate market fluctuations effectively. Read more AI-generated news on: https://app.chaingpt.org/news