
Liquidation is the forced closing of a position by an exchange when the price of an asset reaches a level at which your margin deposit no longer covers your losses.
How to avoid liquidation?
- You should not trade with 100x leverage, unless you are the Wolf of Wall Street. Stay within 5x until you feel confident.
- Set stop losses! Let this be your airbag for when the market decides to play tricks on you.
- Keep an eye on the news. The crypto market is very sensitive to news. Rumors of new bankruptcies or Donald Trump's tweets can turn things upside down.
- Don't put all your eggs in one basket. Spread your capital across multiple assets to minimize risk.
Liquidating positions is a pain every trader has experienced. But if you are careful, follow simple rules and learn from mistakes, you can safely say: I control my risks.
We have our own history of liquidations and trading the markets. Watch an interview with the trader on our YouTube channel.




