Crypto Futures Liquidation: Shocking $138 Million Wiped Out in an Hour

Key Points

1. A total of $138 million in crypto futures was liquidated in one hour, contributing to $339 million in liquidations over 24 hours.

2. Leveraged trading allows controlling larger positions with small capital but carries high risks if the market moves against the position.

3. Liquidation cascades occur when many leveraged positions are liquidated simultaneously, exacerbating market downturns.

4. Risk management strategies, such as avoiding excessive leverage and setting stop-loss orders, are crucial for traders.

5. High cryptocurrency market volatility is characterized by rapid price swings, large trading volumes, and major news events.