cryptonews.com
Total liquidations
At the time of writing, BTC trades at USD 58,570 and is down by 3% in an hour, trimming its daily gains. The price is still up by 6% in a week.
Experienced traders are advising newcomers to stay away from leveraged trading.
It refers to borrowing funds so that you can take a larger position than you would be able to with your existing funds so that you can potentially generate a higher profit. However, while margin trading enables traders to amplify their returns, it can also lead to increased losses and liquidations.
As reported on multiple occasions, long liquidations have become more numerous this year. With bitcoin (and other coins) breaking all-time highs, some traders may feel unable to gain significant exposure without margin trading. However, a growing number of traders can’t afford to maintain their leveraged positions in the event of dips. Hence, the growing frequency of big liquidations.
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Reactions:
Once again over leveraged, late longers, getting wiped out left and right - like every 2 weeks and every direction.… https://t.co/tgLdMzPVQJ
— Pierre (@pierre_crypt0)
Beautiful stop loss hunting .. again. Now that all leveraged longs are liquidated, we finally have room for breakin… https://t.co/WpWdiTlcPl
— PlanB (@100trillionUSD)
What's with the panic? #BTC just retesting the break out
— Crypto_Ed_NL (@Crypto_Ed_NL)
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Learn more:
- This Is The Biggest Risk To Crypto Market According to Pantera Capital CIO
- What Are Leveraged Tokens And Should You Trade Them?
- Cryptoasset Margin Trading: How Safe is it?
- 7 Ways to Short Crypto
- Crypto Traders Warn Newbies About New & Super Risky Binance Feature
- 5 Leverage Trading Platforms (for Experienced Margin Traders) in 2021
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(Updated at 08:54 UTC with a chart.)