Leverage is where many crypto accounts are wiped out, and the mechanism is liquidation. Understanding it is essential before going anywhere near margin or futures.
How liquidation happens
When you trade with borrowed funds (leverage), the exchange requires collateral. If the price moves against your position far enough, your collateral can no longer cover the loss, and the position is force-closed — liquidated — often locking in a total loss of the margin.
Why it is so dangerous
High leverage means a small adverse move can liquidate you, and cascading liquidations can accelerate market crashes. Many beginners underestimate how quickly it happens. The safest approach to leverage for most people is to avoid it. This is education, not advice.
Educational content, not financial advice. Crypto is volatile and you can lose money. Do your own research. Crypto Ruble Coins is a news and education publication — not an exchange, conversion, or off-ramp service.
Last updated 13 Jul 2026
The Crypto Ruble Coins editorial desk reports and edits human-written journalism on the money layer of crypto — CBDCs, stablecoins, and crypto priced in your currency. Independent. Not financial advice.