#ProjectCrypto

Your total assets are 100 Taka. Out of this, the value of land is 50 Taka. With the remaining 50, you do business here and there. After some profit/loss, your household runs quite well.

But once you got a great opportunity. It requires more than 50 Taka to invest. If it profits, you will gain 200 Taka. Tempted by greed, you went to take a loan from the moneylender to seize that opportunity. The condition is that if you cannot repay the money on time, your land will belong to the moneylender.

The process of losing your land to the moneylender is called 'liquidation'.

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In crypto, many also take loans from exchanges to trade futures/margin calls. Long or short. Long means taking a trade in the hope that the project's price will rise on a specific day in the future. And short is the complete opposite - meaning the expectation of a price drop.