How to Avoid Liquidation in Crypto Trading — 7 Proven Strategies
Getting liquidated wipes your entire margin. Here are 7 proven strategies to protect your capital and never get liquidated again.
Liquidation is the #1 account killer in crypto trading. But it's completely preventable if you follow these strategies consistently.
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⚠️ What Is Liquidation?
When you trade with leverage, your exchange will automatically close your position if losses exceed your margin. This is called liquidation — and it means you lose your entire deposit for that trade.
🛡️ 7 Strategies to Never Get Liquidated
Use our Liquidation Calculator before every leveraged trade. Know your exact liquidation price.
Higher leverage = closer liquidation price. Most professionals use 3x-5x maximum, not 100x.
Place your stop-loss at least 20% above your liquidation price. This gives you a safety buffer.
Use the Position Size Calculator to risk max 1-2% of your account per trade.
Isolated margin limits your loss to that trade only. Cross margin can liquidate your entire account.
If price moves against you slightly, adding margin can prevent liquidation — but only if your analysis is still valid.
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