1. Without Leverage:

If you only trade with your own funds ("spot trading," no margin/leverage) and don't enter into short positions or derivative contracts, there is no risk of liquidation. The value of your holdings can still decline, but you will not be forcibly closed out by an exchange.

Thus, trading without any risk of liquidation is possible, but only if you avoid leveraged products and always maintain full collateral for your positions.

2. With Leverage:

If you use leverage or borrow funds to increase the size of your trading position, there is always some level of liquidation risk. Exchanges require this mechanism to ensure they don’t lose money on traders’ behalf. Even very conservative leverage (e.g., 1.1x) still has a theoretical liquidation threshold, though it may be far from your entry and unlikely for normal market moves.

Some traders try to minimize this risk with very low leverage, careful monitoring, and tight risk management, but the risk of liquidation can never be fully removed in leveraged trading.