$SOL
$XRP
#Liquidations
Yesterday we saw more than 300M liquidation after clarity act failed
Many people are asking why it happened
Here are the main reasons in simple words
Reason one is high leverage. Many traders were using 50x to 100x long. Small drop liquidated them all at once
Reason two is over confidence. Market was thinking clarity act will pass easily. Everyone opened long before the vote
Reason three is no stop loss. People were holding without any risk management. When market dropped they could not exit
Reason four is $BTC breakdown. BTC fell below 75k and alts fell faster. XRP and ETH liquidations made the cascade bigger
Reason five is fear and news trading. The no vote came suddenly and bots started selling. Spot holders panicked and futures got liquidated
This is why futures is risky. Spot can wait but futures cannot
Always manage your risk and use low leverage
follow for more @CryptoQueen_DXC
#Write2Earn
$XRP
#Liquidations
Yesterday we saw more than 300M liquidation after clarity act failed
Many people are asking why it happened
Here are the main reasons in simple words
Reason one is high leverage. Many traders were using 50x to 100x long. Small drop liquidated them all at once
Reason two is over confidence. Market was thinking clarity act will pass easily. Everyone opened long before the vote
Reason three is no stop loss. People were holding without any risk management. When market dropped they could not exit
Reason four is $BTC breakdown. BTC fell below 75k and alts fell faster. XRP and ETH liquidations made the cascade bigger
Reason five is fear and news trading. The no vote came suddenly and bots started selling. Spot holders panicked and futures got liquidated
This is why futures is risky. Spot can wait but futures cannot
Always manage your risk and use low leverage
follow for more @CryptoQueen_DXC
#Write2Earn
