Jiang Zhuoer: Be wary of extreme market conditions leading to "chain liquidations," and it is recommended to use a per-position model for high-leverage trading

Jiang Zhuoer, the founder of the Liebit Mining Pool (B.TOP), stated in a post that around 13:10 Beijing time today, a small flash crash occurred across the entire market, with BTC, ETH, and various altcoins showing significant price spikes, and even non-crypto assets like crude oil experienced short-term violent fluctuations. It is advised not to use a unified account to hold a large number of high-leverage altcoin long positions simultaneously, as in a joint margin model, if a certain cryptocurrency suddenly crashes by 50%, it may lead to insufficient margin in the account, triggering the forced liquidation of other assets in the account.

If engaging in high-leverage altcoin trading, it is recommended to use a isolated margin model to separate positions, avoiding the extreme market conditions of a single cryptocurrency from affecting the entire account. Although isolated margin trading is relatively cumbersome, at least in the event of extreme market conditions, "if one blows up, it only blows up one," which can reduce the risk of the entire account's assets being instantly wiped out.