Cryptocurrency has been making waves in the financial world, with its decentralized nature and potential for high returns. However, with great potential comes great risk. On Feb 20, the crypto market experienced a massive liquidation event, with a total of $233M being liquidated within just one hour. Out of this amount, a staggering $189.01M were from short positions. For those unfamiliar with the terminology, a short position is when an investor borrows a certain amount of cryptocurrency and sells it at the current market price, with the intention of buying it back at a lower price in the future. This strategy works well in a bear market, where prices are expected to decrease. On the other hand, a long position is when an investor buys a certain amount of cryptocurrency with the expectation that its value will increase in the future. This strategy is more commonly used in a bull market, where prices are expected to rise.

The recent liquidation event serves as a reminder of the high volatility in the crypto market. While it can be tempting to take advantage of the potential for quick profits, it is important for investors to approach it with caution. Here are some tips for navigating high price volatility in the crypto market:

1. Do your research

2. Diversify your portfolio

3. Set stop-loss orders

4. Don't invest more than you can afford to lose

5. Keep emotions in check

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