ChainCatcher reported that Jiang Zhuoer, founder of Bitcoin mining pool B.TOP, said around 13:10 Beijing time today, the market saw a brief flash crash. BTC, ETH and several altcoins all printed sharp wicks, while non-crypto assets such as crude oil also moved violently for a short period. Jiang warned traders not to hold large high-leverage altcoin longs in a single unified account, saying a sudden 50% drop in one coin could leave the account short of margin and trigger liquidations across other assets. He recommended isolated margin for high-leverage altcoin trading so positions are separated and one extreme move does not affect the whole account. He added that isolated margin is less convenient, but in an extreme move, only one position would be lost, reducing the risk of the entire account being wiped out at once.
ChainCatcher reported that Jiang Zhuoer, founder of the Bitcoin mining pool B.TOP, said the market saw a brief flash crash around 13:10 Beijing time today.
He said BTC, ETH and several altcoins all showed obvious wick moves, and non-crypto assets such as crude oil also swung sharply for a short time.
Jiang warned against holding a large number of high-leverage altcoin longs in a single unified account. In a unified margin setup, he said, if one coin suddenly drops 50%, the account may run short of margin and trigger cross-liquidations of other assets inside the account.
For traders using high leverage in altcoins, Jiang recommended isolated margin, which keeps positions separated and helps prevent one extreme move from affecting the whole account.
He said isolated margin is more cumbersome to use, but in an extreme move, it means "only one position gets blown up," which can reduce the risk of an entire account being wiped out at once.
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