Prevent Liquidation in Extreme Market Conditions: Black Swan Response Plan



Black swan events in the cryptocurrency market occur frequently (such as price spikes, outages, policy negative news), so preparations must be made in advance:

1. Reduce positions before extreme market conditions: Before major news (such as Federal Reserve rate hikes, Bitcoin halving), lower your position to under 10%, or even hold cash and observe.

2. Avoid holding high-leverage positions overnight: Overnight market fluctuations are highly volatile, and high-leverage positions are easily liquidated by price spikes. Try not to hold positions overnight within the day.

3. Diversify platform holdings: Do not put all funds on one platform to avoid liquidation caused by platform outages, price spikes, or disconnection.

4. Set anti-price spike stop-loss: Place stop-loss orders outside critical levels to avoid being wiped out by short-term price spikes.
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