Liquidation is every crypto trader's worst nightmare. But what can be done to avoid it?

WhiteBIT’s Halloween crypto fear campaign led me to share some insights on the topic.
https://whitebit.com/halloween

Anyone involved in margin or futures trading has likely faced liquidation. It’s when the exchange automatically closes your positions because the losses on your open position exceed your margin balance. This is done to prevent losses that could surpass the funds you have in your account. It often happens on platforms that use leverage, like OKX, Coinbase, and WhiteBit, where I frequently trade myself.

How do I avoid liquidations?
From my experience, tools like "Managing leverage," "Using stop-losses," and "Portfolio diversification" are essential. But there’s one tool I really like — the "Liquidation Calculator," like the one on WhiteBIT.

It helps me calculate the price at which my assets would get liquidated, so I always know when to be more cautious and adjust my strategy.

So, to avoid any fears or mess-ups called liquidation, pay closer attention to these tools!