$1 Billion worth of liquidations in cryptocurrency 

A whopping 275,000 traders have lost more than $1 billion in total over the last 24-hours. Leverage trading is a dangerous game and we always warn people against using leverage. 

Don't trade on leverage under these conditions 🚨#StockMarket #bitcoin

— Authority Capital (@emphatic) August 5, 2024

Cryptocurrency trading is not a game where everything is backed by governments or huge banks that can get away with it. 

What is the cause of such high liquidations? Well, a lot of these traders chased their favorite influencers showing 100x gains using leverage. What they do not seem to realize is majority gets wiped out in the game of leverage. 

While those who shorted the crypto market are in profit, the bounce from 49000 was brutal and that too could have wiped the bottom shorters. 

A lot of leverage traders trade for exceptional profits but most loose this game. The sooner traders understand that leverage only promotes banking, not surviving or living, the better. Times like these is when unleveraged slowly add to their holdings, for the future. 

There’s a lesson in there – spot and chill.