How to Avoid Liquidation in Crypto Trading: A Detailed Guide

Recently, the cryptocurrency market has been very volatile, causing many traders to feel anxious about the risk of liquidating their accounts. This is a major risk that anyone using leverage in trading must face. However, you do not need to panic. With the right strategy, you can completely protect your account from this risk. Here are some tips to avoid liquidation in crypto trading:

1. Use Low Leverage ⚖️ Leverage is a double-edged sword. While it can help amplify profits, it also increases the risk of liquidation if the price moves against predictions. Use low leverage (1x to 3x) to minimize risk. With low leverage, you have a greater "margin of safety" before the price reaches the liquidation level. Tip: Before opening any orders, calculate the liquidation price carefully based on leverage and the amount of capital you are using. Don't let greed lead you!
2. Place Stop-Loss Order 🔴 An extremely important tool that you need to use is the stop-loss order. This is an automatic way to protect yourself when the price moves against your prediction. Place stop-loss orders at reasonable levels based on market support or resistance areas. This order helps you limit losses and avoid losing the entire amount of capital if the price drops sharply. Remember: Smart trading is not gambling. Manage your risks in a systematic and scientific way.
3. Do Not Use All Capital 💰 A common mistake of newcomers is to put all of their capital into a single trade. This is very dangerous, especially when using leverage. Only use a small portion of the capital for each transaction (about 1-3% of the total capital). Always keep a reserve of capital to be able to adjust or open new orders when necessary. With proper capital management, you will avoid account burn when the market fluctuates sharply.
4. Regular Order Tracking 📊 The cryptocurrency market changes extremely quickly, and prices can fluctuate sharply in just a few minutes. Please regularly check your orders to adjust stop-loss and take-profit orders in a timely manner. Monitor news and market trends to predict unexpected fluctuations. Do not fall into the trap of "open orders and forget" - you need to be proactive and sensitive to keep your account safe.
5. Avoid Excessive Transactions 🚫 During market volatility, many traders often try to "recover" by trading continuously. However, this is a mistaken strategy. Trading too much can make you tired and lead to irrational decisions. Instead of trading constantly, focus on clear opportunities with a good risk/reward ratio. Remember: Quality is more important than quantity. Trading less but effectively will help you maintain long-term profits. In short: To avoid liquidation when trading crypto, you need to apply the following principles: Use low leverage to reduce risk. Set stop-loss orders to protect capital. Smart capital management - don't put everything into one trade. Monitor the market regularly to adjust strategies. Avoid overtrading and maintain emotional stability. Always remember that trading is a long game. Tight risk management will help you not only survive but also thrive in this volatile crypto world. 🚀 DYOR! #Write2Earn #MicroStrategyAcquiresBTC $BTC {spot}(BTCUSDT)