Crypto liquidation explained: Why traders get liquidated and how to reduce the risk

If you’re a trader or have aspirations of becoming one, you’ve no doubt seen headlines like this one before:“$300 million in crypto liquidations in 24h” (and if you haven’t, do us a favor and Google it). Numbers like that are par for the course in volatile markets. So know that if you trade with leverage, even occasionally, you’re closer to that risk than you might think.

Because the truth is, liquidation is not a rare event. At all. Those headlines we mentioned? They happen on a weekly basis.