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When using leverage, risk management is crucial due to the high volatility of cryptocurrency markets. Investors should set stop-loss orders to limit potential losses and avoid liquidation. Additionally, it's important to only use leverage that aligns with your risk tolerance—keeping leverage low can help reduce the risk of significant losses. Portfolio diversification and maintaining sufficient margin are other key strategies. Regularly monitoring the market and adjusting positions based on changes in volatility can also help manage leveraged exposure effectively.
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