A cryptocurrency trader witnessed a gain of over $1.1 million on their Ether position in just two days after positioning for the current cryptocurrency market correction.
A skilled trader made over $1.1 million profit from their short position on Ether (ETH), which involved 'borrowing' the underlying cryptocurrency from a broker, selling it at the current price, and then buying it back when the price drops — a strategy used by traders to bet on the depreciation of an asset.
This trader opened a 50x leveraged short position when Ether was trading at $3,428, shorting a total of 19,186 Ether worth over $64.5 million at 10:56 AM UTC, according to data from hypurrscan.
Wallet ‘0x20c’ 50x leveraged short position on ETH. Source: hypurrscan
In addition to the unrealized profit of $1.1 million, the trader also earned over $680,000 from funding fees on their short position, with the liquidation price above $4,750.
The savvy trader opened a short position on December 24, initially losing over $1.2 million on the first day, according to a post from on-chain intelligence company Lookonchain on December 24.
While leveraged trading can increase profit potential, it can also significantly increase downside risk and lead to the loss of the initial investment.
Losses from leveraged trading. Source: Tarded Degen Gambler
In January 2024, an anonymous trader lost over $161,000 in a single trade after being liquidated from a leveraged position, highlighting the risks of leveraged trading.
Cryptocurrency Trader Hits Big in 2024 with Million-Dollar Trades
By leveraging the added value of cryptocurrencies, some savvy traders hit it big in 2024 as Bitcoin (BTC) reached the $100,000 mark for the first time in cryptocurrency history on December 6.
On December 14, an anonymous memecoin trader turned a $27 investment into a record profit of $52 million, yielding a return on investment of more than 1.9 million times on the memecoin Pepe (PEPE).
However, this required the trader to patiently hold for 600 days to realize the massive profits from this memecoin, as Pepe was reaching new heights.
Earlier in May, another anonymous trader profited from Pepe's price surge, earning over $46 million after achieving a staggering profit of 15,718 times on an initial investment of $3,000.
Trades of the smart Pepe trader. Source: Lookonchain
Other traders have capitalized on newly created tokens, such as the memecoin Just a Chill Guy (CHILLGUY), which helped one trader turn $160 into $5.6 million, according to a report by TinTucBitcoin on November 27.
