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A crypto trader recently made an impressive $1.1 million profit on a short position in Ether (ETH) with 50x leverage. This operation was carried out in just two days, taking advantage of the current correction in the cryptocurrency market.
Crypto: Impressive profit from a short position on ethereum
The trader opened his short position when Ether was trading at $3,428, selling a total of 19,186 ETH worth over $64.5 million. By using 50x leverage, he was able to maximize his potential profits, although this cryptocurrency trading strategy also carries significant risks. The liquidation price of this position was actually set at more than $4,750.
In addition to the unrealized profit of $1.1 million, the trader also earned more than $680,000 in fees for financing his short position. This operation originally opened on December 24th and lost over $1.2 million on its first day. However, due to accurate analysis of the crypto market, the trader was able to reverse the trend and make a significant profit.
Profits and dangers of leveraged trading
Trading with leverage can significantly increase returns, but it also increases the risk of losses. In January 2024, a cryptocurrency trader lost over $161,000 in a single trade after being liquidated from a leveraged position. Another trader, on the other hand, turned a $27 investment into an extraordinary profit of $52 million on memecoin Pepe (PEPE), yielding a return on investment of more than 1.9 million times.
Leveraged trading offers lucrative opportunities but carries high risks. Recent successes show that with careful management and accurate analysis of the crypto market, significant profits are possible. However, traders should be aware of the dangers and tread carefully in this volatile area.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.