Ethereum short earns $1.1M in 2 days with 50X leverage
A cryptocurrency trader has added more than $1.1 million in Ether space in two days after strategically positioning for the current crypto market correction.
A savvy crypto trader has made more than $1.1 million in profits on his short position in Ether (ETH), which involves “borrowing” the underlying cryptocurrency from a broker, selling it at the current price, and buying it back after the price falls — a strategy used by traders to bet on asset price declines.
When Ether sold at $3,428, the trader opened a 50x leveraged short position, with a total of 19,186 Ether worth more than $64.5 million as of 10:56 am UTC on December 26, according to blockchain data from Hypurrscan.
Wallet ‘0x20c' 50x used ETH short. Source: hypurscan
Aside from the $1.1 million unrealized profit, the trader has funded more than $680,000 in short positions, which are worth more than $4,750.
The trader opened a short position on Dec. 24 that lost more than $1.2 million on the first day, onchain intelligence firm Lookonchian wrote in a Dec. 24 X post.
While leveraged trading can increase revenue, it can significantly exacerbate side effects and lead to a loss of initial investment.
Supported Trading Losses Source: Tarded Degen Gambler
In the year In January 2024, an anonymous trader lost more than $161,000 worth of money in a single trade after being released on the balance sheet, indicating the risks of leveraged trading.
Related: 2024 Redemption Arches: Ripple's Victory, Memecoins Rise, RWA Growth
Crypto traders win big in 2024 with million dollar trade
In 2018, some traders were on the rise in crypto prices. They won big in 2024. In the midst of Bitcoin (BTC)'s historic climb to the $100,000 milestone, it was surpassed on December 6 for the first time in crypto history.
On December 14th, an unknown memecoin trader turned a $27 investment into an extraordinary $52 million profit, making a return on investment of over 1.9 million times the PEPE memecoin.
However, it took 600 days for this trader to realize his huge memecoin profit while Pepe was moving to new record highs.
Related: South Korea sanctions 15 North Koreans over crypto heists and cyber theft
In May, another unidentified trader capitalized on Pepe's price gains, making more than $46 million in profits, a 15,718-fold return on his initial $3,000 investment.
Savvy Pepe Merchant Transactions. Source: Lookonchain
Other traders capitalized on newly created meme tokens such as the Just a Chill Guy (CHILLGUY) memecoin, which helped one trader turn a $160 investment into $5.6 million, Cointelegraph reported on November 27.
Eric Trump explains how his father moved BTC to $1M. Source: YouTube
Magazine: Bitcoin's Dominance Will Fall by 2025: Benjamin Cowen, X Flame Hall
