Reading Crypto Liquidations and Funding Rates as Risk Signals, Not Forecasts

A DEV Community tutorial lays out a workflow for interpreting crypto liquidation data alongside funding rates to gauge leverage stress. It stresses that forced-order dashboards describe positioning pressure rather than serving as buy or sell signals. The guide defines liquidations, funding rates, and open interest, and explains how each reflects where risk sits in the market. It proposes checking short and longer time windows, the long-versus-short split, coin and exchange concentration, and the largest single prints. The author frames the material as informational only and warns that derivatives trading carries substantial risk of loss.