Overleveraged Crypto Traders Just Lost Another USD 1B, Binance Leads Again

Over USD 1bn in long trading positions has been liquidated in the past 24 hours as overly optimistic traders seem not willing to learn after they lost almost USD 2bn just a week ago.

Almost USD 600m of those positions were in bitcoin (BTC). XRP, which unexpectedly rallied today, is also retracing gains, but others have declined by 6%-11% in a day after BTC hit a new all-time high of USD 58,641.

In the meantime, the leader once again is Binance - over half of all liquidations in the past hour occurred on this platform. Liquidations by the hour:Source: UTCAs reported, long liquidations have increased since the beginning of the year.

Other major coins from the top 10 club are down by 6%-11% in a day, except XRP that suddenly rallied today but is also correcting gains.

Meanwhile, similarly to the last week, major exchange Binance leads again - over 50% of the total liquidations in the past hour happened on this platform again.

Exchange liquidations in an hour:

As reported, long liquidations have become more numerous over the past month or so. As soon as the lid blows off and bids fail to appear, liquidations of levered long positions will drive the price down as just happened after the closure.Leveraged trading refers to taking higher positions than you can with your existing funds to generate higher profits.

But while margin trading can maximize returns, it can also result in increased losses and liquidations, which is why experienced traders tend to advise newcomers to stay away from leveraged trading. @cointradernik Are things like this normal now?

As reported, leveraged trading is the biggest risk to the crypto market in terms of what could cause “something to pop down the line,” according to Joey Krug, Co-chief Investment Officer at US-based major crypto investment company Pantera Capital.

The Bitcoin price has retraced again so far today to 53,000. We should then start gaining strength quite rapidly after that. The following article, by Loma @LomahCrypto, details leveraged tokens and whether they are worth trading. The safety of cryptoasset margin trading: How safe is it?

CoinCurrency Traders warn newbies about the new and very risky Binance feature, which was updated at 11:05 UTC with an infographic. However, while margin trading enables traders to amplify their returns, it can also lead to increased losses and liquidations, which is why experienced traders tend to advise newcomers to stay away from leveraged trading.

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A pair of long liquidations took place in 10 minutes: Source: bybt.com, 10:30

- What Are Leveraged Tokens And Should You Trade Them?

- According to Joey Krug , Co-Chief Investment Officer at US-based Pantera Capital, leveraged trading is the biggest threat to the crypto market when it comes to what could cause “something to pop down the line,” as reported. So they get leveraged up, thinking institutions will buy it so it doesn't go that down. How Safe is it?

- 7 Ways to Short Crypto

- Crypto Traders Warn Newbies About New & Super Risky Binance Feature

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(Updated at 11:05 UTC with an infographic.)