In the crypto world, almost every day someone gets liquidated. When $BTC rises, some people close their positions at a loss; when it falls, others get liquidated to zero. Why are such dangerous activities still attracting continuous influx of people? Ultimately, many newcomers simply don't understand what they are doing.

What is liquidation? Simply put, it means your margin is completely wiped out, and your account is cleared to zero. But this only happens under specific circumstances—and most people are unaware of this.

Crypto trading mainly divides into two parts: spot and futures. Spot trading is like buying a gold bracelet at a store; once purchased, it stays in your account. Even if a coin drops 70% or 80%, you still have something in your account. As long as the coin exists and the market is operating, you won't get liquidated. This is the biggest advantage of spot trading—the account funds will never go to zero overnight.

Futures trading is completely different. It supports leverage up to 150x, making profits come quickly, but losses can also happen in an instant. Because of leverage, your margin can be forcibly liquidated—meaning you get wiped out.

So, if you see news about sudden wealth or instant zeroing out, it's mostly due to futures trading. Even if you're trapped in a spot position, at worst, you face paper losses; your principal won't disappear overnight. Conversely, with futures, if you're not careful, your principal can indeed vanish.

If your project's token encounters security issues or the team runs away, that's another matter. But purely from a trading mechanism perspective, choosing the right trading method makes a huge difference in risk.