๐ฅ What is Crypto Liquidation?
It happens when your leveraged trade is auto-closed by the exchange because your losses wipe out your margin (collateral). Happens in futures or margin trading, not in spot.
๐ How to Avoid It:
1. โ Avoid high leverage โ the higher the risk, the easier to lose it all.
2. ๐ Always use stop-loss โ exit early, protect capital.
3. ๐ Use isolated margin โ limit risk to one trade.
4. ๐ฐ Donโt trade full capital โ leave safety funds.
5. ๐ฐ Watch market news โ big events = big moves.
6. โ Add margin if confident โ only if you know what you're doing.
Beginners? Stick to spot trading. Learn first, earn next. ๐