Btc

How can we avoid liquidation?

First of all, don't be blinded by greed and don't overuse leverage. Leverage is like a double-edged sword. If used well, it can make you rich quickly, but if used poorly, it will ruin you forever. Choose the leverage ratio reasonably according to your risk tolerance. If you are a novice or have a low risk tolerance, try to use less or no leverage.

Secondly, you must do a good job of risk control. Before investing, set a stop loss point, just like setting a safety bottom line for your bungee jumping trip. When the market trend is unfavorable and the loss reaches the stop loss point, you must stop the loss decisively, don't be lucky and fantasize that the market will rebound. Because once the liquidation occurs, you will have no chance to turn over again.

Liquidation is a super dangerous "minefield" in the field of financial investment. On the road to pursuing wealth, we must always keep a clear mind, be cautious about leveraged transactions, and take risk prevention measures to avoid being swallowed by the "demon" of liquidation.