Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
Pseudonymous cryptocurrency trader Crypto Nerd joined the list of liquidated traders impacted by the hefty altcoin correction.
What Happened: By his own account, Crypto Nerd was 3x long on Pepe (CRYPTO: PEPE). The Coinbase announcement of listing Pepe futures made the trader particularly bullish.
On April 13, Crypto Nerd woke up to a liquidated position, saying he ignored “so many sell signals” to go “giga long on Pepe.”
There were so many sell signalsDouble Top on OTHERS.D
Rising BTC.D
Rising USDT.D
All alts dumping even with slightest downside deviation in $BTC
Even $ORDI dumped within a few days after listing announcement
— Crypto Nerd (@cryptonerd75) April 13, 2024
He claimed, "I don’t even have $1000 in my bank account but had $1M in Binance. I have been in crypto since 2017."
Also Read: What DOGE And SHIB Holders Can Learn From This Meme Coin Millionaire’s Trading Strategies
Why It Matters: The recent altcoin slump over the weekend left many traders liquidated, but it also provided a valuable lesson on how to approach the markets. Several factors had already indicated that Bitcoin and altcoins were on shaky ground, even before the attack occurred.
In response to the liquidated trader’s tweet, nearly 99% of the crypto community members shared their own experiences of making mistakes and losing significant amounts of money.
SlumDOGE Millionaire, known as ‘The Dogecoin Millionaire,’ offered words of encouragement, tweeting, “I lost $3,000,000 before bro and I’m still here, you’ll make it all back too – just keep doing what you’ve been doing just be more careful and don’t go all in like that.”
The World Of All Streets reached out to the trader, asking them to check their direct messages, while Rekt Fencer reminded them that this is “Just part of the game, Don’t give up, good luck.”
Lady of Crypto shared her personal story of losses in 2019 and 2020, adding, “We are on the verge of the biggest bull run in history, and there are many millions to be made. This is not the end of this run,”
Another trader, Plazma, revealed their own strategy, saying, “This is why I’m long 1.5x and only on 20% of my net worth. If the price goes near my liquidation I will just add more collateral until I can cover 100% of the borrowed funds.”
These responses from the crypto community serve as a reminder that losses are an inherent part of trading, and it’s crucial to approach the markets with caution and a well-planned strategy. The liquidated trader’s experience has provided an opportunity for others to learn from and adjust their own trading approaches.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: ‘I’m Liquidated Again … Bye For Good:’ Mad Crypto Alpha With Ivan
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