For the newbies asking about Liquidation:
Liquidation occurs when you borrow money/more crypto using your crypto collateral/assets and price goes the opposite way enough that your debt is greater than your collateral causing a seizure/claim of your assets/collateral.
Liquidation occurs when you borrow money/more crypto using your crypto collateral/assets and price goes the opposite way enough that your debt is greater than your collateral causing a seizure/claim of your assets/collateral.
You can borrow by using leverage. The higher your leverage, the higher you can borrow. Crypto Exchanges offer as much as 125Γ leverage meaning you can borrow as much as 125Γ your collateral. The more you borrow, the more likely you are to get liquidated with price movements.
Most exchanges provide a specific price at which they'd seize your assets when you borrow using your collateral.
It's called a 'liquidation price'. The higher the leverage/borrowed amount, the closer your liquidation price to the price at which your borrow.
It's called a 'liquidation price'. The higher the leverage/borrowed amount, the closer your liquidation price to the price at which your borrow.
Don't try this if you're new to crypto and do not fully understand how borrowing/leverage works.
Shalom!
Shalom!
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