Crypto Crash: As BTC Drops to $62k, Man Loses N1.3bn Trading PEPE on Binance, He Cries
- A young man lost all his fortune to crypto as BTC price went below $62,000 (N74,431,000) on Saturday, April 13
- Hoping that BTC would never crash, the man bet on PEPE altcoin with a 3x leverage to maximise his profit
- A crypto analyst, Waliu, spoke about the importance of risk management in trading a volatile asset crypto
A crypto trader faced his worst nightmare trading futures without risk management, losing $1.14m (N1,368,570,000) on Binance.
With the hope that BTC may go higher, considering its halving in less than a week, a man put all his net worth into trading an altcoin called PEPE.
Trading futures on Binance
Trading futures on crypto exchanges comes with greater risk as both losses and profits could be magnified with leverages.
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Thinking he (cryptonerd75) was safe with his 3x leverage, the man used $1.14m (N1,368,570,000) to long PEPE, betting on its price going higher despite recent market trends.
Without proper risk management, he did not put his trade on Stop Loss (SL). According to Binance (SL) is an automatic function that allows a trader to set where to get out of a market should a position go against them.
BTC price and Israel-Iran conflict
With the news about the Iran-Israel war, BTC dumped, and that set the prices of other cryptocurrencies crashing.
The man woke up to liquidation with his money gone. He said he did not even have up to $1000 (N1,200,500) in a bank account.
In a subsequent post, he got $180,000 (N216,090,000) as his liquidation point was not up to 100% but 83%.
Speaking to Legit.ng, a seasoned crypto trader, Waliu, said the man is a gambler and should have done a proper risk assessment before the trade. He said:
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"As a trader, the first thing you should know is risk management. A good trader should not have risked more than 10% on a trade. How come he placed on all his asset on a single trade? That is disastrous."See his tweet below:
Legit.ng compiled some of the reactions below:
@NobleCoins said:
"Remember when I lost it all during Luna crash . I just look at myself right now and I keep smiling Don’t ever give up . As I always say to my student 'you can come back as twice as tall'."@Plazma0x said:
"This is why I'm long 1.5x and only on 20% if my net worth. If price goes near my liquidation I will just add more collateral until I can cover 100% of the borrowed funds."@EvanLuthra said:
"Everything happens for good, brotha! The market will give you opportunities everyday, just catch them, you will make 100x of what you lost!"
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@CryptoTony__ said:
"Really sad to see stories like this and i hope this person recovers well and learns from the mistakes made. Lesson learnt, not to get greedy and use leverage when a good risk management strategy is in place."@mrbayoa1 said:
"This is absolutely insane! What???"@CryptoDefiLord said:
"Funny how someone lose $1m to futures and people are sympathetic towards him lol. He is a gambler and he kept building on his position to hit big...."Crypto trade built house
Meanwhile, Legit.ng earlier reported that a successful Nigerian crypto trader known as Noblecoins on X shared his latest achievement.
After making many dollars (USDT) from trading meme coins, the man built a mansion with Gerard stone-coated roofing material.
Source: Legit.ng
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