Avoid Crypto Liquidation: What is liquidation in crypto? Guide to Prevention & Mitigation
What is Liquidation in Crypto? Crypto liquidation is the automatic sale of your cryptocurrency assets to cover losses on a leveraged trade (a trade where you borrow funds to amplify potential profits). This forced sale occurs when the value of your assets falls below a certain threshold, triggering a margin call. Understanding this process is critical for protecting your investments. Forced vs. Voluntary Liquidation: Knowing Your Options Two main types of liquidation exist:...