**Can Cryptocurrency Go Negative?** Cryptocurrency, unlike traditional fiat currencies, cannot inherently go below zero. However, traders can potentially experience negative balances due to certain factors: * **Margin Trading:** When traders use leverage to amplify their positions, losses can exceed the initial investment, resulting in a negative balance. * **Borrowing Stablecoins:** Traders who borrow stablecoins and use them to purchase cryptocurrencies can incur debt if the value of their holdings drops. * **Liquidation:** If a trader's margin position is liquidated, they may be forced to sell their assets at a loss, leading to a negative balance. * **Extreme Market Fluctuations:** In periods of extreme market volatility, the value of cryptocurrencies can drop rapidly, potentially causing traders to lose more than they have invested. It's crucial for traders to be aware of these risks and manage their positions accordingly to avoid negative balances.
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