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How do you avoid liquidation in crypto trading?

To avoid liquidation in crypto trading, here are some tips that traders can consider:
1.Proper Risk Management: It's essential to manage risk properly when trading cryptocurrencies. Traders should only invest what they can afford to lose and avoid over-leveraging their positions.
2.Set Stop Loss Orders: Traders can use stop-loss orders to minimize their losses in case the market moves against them. Stop-loss orders automatically close a trade at a predetermined price to limit losses.
3.Diversify Your Portfolio: Diversifying your portfolio with different cryptocurrencies can help reduce risk and minimize the impact of a single asset's price movements.
4.Keep an Eye on Margin Levels: Traders should monitor their margin levels closely and ensure they maintain a comfortable cushion above the maintenance margin level to avoid liquidation.
5.Keep Up With Market News and Trends: Keeping up with the latest news and trends in the cryptocurrency market can help traders anticipate potential price movements and avoid sudden price drops that could lead to liquidation.
6.Use Hedging Strategies: Hedging strategies, such as using options or futures contracts, can help traders reduce their risk exposure and protect against potential losses.
By following these tips, traders can better manage their risk exposure and avoid liquidation in crypto trading.