I have some idea that is a bad sign. Seems too good.
There is some risk involved. One of the main reasons is you need to keep your coins on the exchange as collateral. Basically you don't need to keep the entire amount since there is 100x leverage however you need to keep your leverage low enough not to get liquidated. So if you hedge $50,000 of BTC, you can keep 1 BTC on the exchange and never get liquidated or keep 0.5BTC on the exchange and your liquidation price will be at $100,000. So when it comes close to $100,000 you will need to send more BTC into the exchange. Max you would need to send would be the 1 BTC. Since when price rises and you use BTC as collateral so does your account value.
Where can we sell on the futures? Sorry not informed on that.
Being a long time hodler, getting 10% seems nice.
Yes but keep in mind you can only get 10% on your crypto USD or USDT or USDC. You can't do it with BTC. There is no high funding fees for BTC only USD. You can use any futures exchange like Binance, Bitmex, Bybit, Kraken, Bitfinex, etc.
So where does the risk part come in? I'm a little ignorant with it comes to futures. Let's say I had 1 eth and I put it up in the futures market in Jun to sell for an additional 10% price I would make 10% profit in June. I guess the risk is if you're buying on margin and don't actually have the shares of eth. Is that where the risk comes in?