What Does Liquidation Mean and How to Avoid It?
Updated: Dec 6, 2022
The crypto market’s high volatility means liquidations are a common occurrence. Bitcoin and other cryptocurrencies are renowned for being high-risk investments prone to extreme price swings. But while this volatility makes them a concern for regulators, it also presents an opportunity for investors to generate significant profits, particularly when compared to traditional asset classes like stocks and commodities. Over 2020, amid the coronavirus outbreak, bitcoin ended the year up 160% versus the S&P 500 at 14% and gold up 22%.