The liquidation tragedies in the crypto market happen every day. Data from blockchain analysis platforms show that in the contract liquidation events of 2024, 82% of traders share a common problem: over-concentrated positions.

The logic behind this is actually quite brutal. Many people equate "full position operation" with "quick profit," but the reality is often the opposite—full positions are like a sports car without brakes. When the market moves in your favor, you can indeed accelerate rapidly; once the market trend reverses, you're just waiting for the car to crash and burn.

**Key Data Comparison**

Let's take a 6000U account as an example. Assuming all are 5x leverage long positions:

- Using only 20% of funds (1200U), it takes about a 50% market reversal to trigger liquidation.
- Using 95% of funds (5700U), less than a 6% fluctuation is enough to be forced to close.

And it doesn't end there. If a trader puts 96.7% of their principal into a position, what is "small fluctuation"? In the crypto market, a 3% daily fluctuation is almost routine. The result is the account being wiped out instantly.

**The real culprit of liquidation is not leverage, but position size**

Many people misunderstand a concept. They think that using 3x leverage is safer than 5x, but this is an illusion. The true determinant of life or death is how much principal you use to open that leverage.

A 100U account with 5x leverage and full position, versus a 10,000U account with 10x leverage but only 10% of funds used, the risk level of the former is off the charts, while the latter might be much more stable.

**Practical Strategy Recommendations**

Market-tested, these points can indeed reduce the risk of liquidation:

Control each position to within 20-30% of the total account balance, adjusting leverage accordingly—this way, even a 5-10% adverse move can be survived. Never go all-in; don’t use leverage and put all your money into one position at the same time.

Market volatility is normal, not abnormal. Traders who believe "my judgment is 100% correct" are often the first to be wiped out. Leave at least 20% cash buffer—it's not conservative, it's a matter of survival.

In the crypto market, staying alive is always more important than making quick money. Surviving the initial years carefully gives you the chance to see long-term gains.