⚠️ Liquidation Wipes You Out – DCA Builds You Up 📊
In today’s volatile crypto market, understanding risk is as important as spotting opportunities.
💥 Liquidation:
When trading with leverage, if your margin falls below the maintenance level, your position is force-closed—often wiping out your entire margin. Sudden price swings, especially in futures markets, make high-leverage positions extremely vulnerable.
📈 DCA (Dollar-Cost Averaging):
A disciplined approach where you invest a fixed amount at regular intervals, regardless of price. This smooths out volatility, avoids emotional decisions, and builds long-term positions in assets like BTC or ETH without timing the market.
🔍 Bottom Line:
Leverage can amplify gains but also risks total loss through liquidation. DCA, while slower, prioritizes capital preservation and steady growth—a strategy many seasoned investors swear by in uncertain markets.
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