When the liquidation line for lending is only “three steps” away from me, I usually stop there and don’t keep adding positions— the more frantic you are, the easier it is to get yourself liquidated. First, re-check your position and the way you’re calculating your debt: are you valuing the collateral at the current market price, or at that “should be worth” price in your head… to put it bluntly, don’t fool yourself. Then do two things: either add a bit of margin to pull the safety cushion further out, or directly reduce leverage / repay part of your debt—better to make a little less than to bet on that one rebound.

Recently, people have been watching big on-chain transfers and unusual movements between hot and cold wallets, then interpreting it as “smart money is coming / leaving,” right? I do look too, but I only treat it as noise for reference. When you’re really up against the red line, what matters most is still your own liquidation price and liquidity. There are plenty of tutorials— I only like the kind that explains in plain language how liquidation gets triggered, what the slippage is, and the penalties; don’t just pile on indicators and call it a day. Anyway… living is most important.