A crypto trader experiences a devastating loss while trading cryptocurrency futures without implementing risk management strategies, resulting in a $1.14 million (N1,368,570,000) loss on Binance.
Driven by the anticipation of Bitcoin‘s potential surge due to its upcoming halving in less than a week, the trader invested their entire net worth in trading an altcoin named PEPE.
Trading futures on cryptocurrency exchanges pose significant risks as both gains and losses can be amplified through leverages.
Believing that a 3x leverage would provide safety, the trader committed $1.14 million (N1,368,570,000) to long PEPE, speculating on its price increase despite recent market trends. However, lacking proper risk management, they neglected to set a Stop Loss (SL) on their trade.
A Stop Loss (SL) is an automated function that enables traders to determine an exit point if a position moves against them.
Amidst news regarding the Iran-Israel conflict, Bitcoin experienced a downturn, leading to a market-wide cryptocurrency price crash. Consequently, the trader woke up to a liquidation event, resulting in the loss of their funds.
In an update, the trader revealed that their liquidation point was 83%, not full 100%, resulting in a payout of $180,000 (N216,090,000).
How I lost over $1M trading PEPE cryptocurrency on Binance
“Just woke up and realised I got liquidated overnight. I was 3x long PEPE. I lost everything I had. I don’t even have $1000 in my bank account but had $1M in finance. I have been in crypto since 2017.
“Today I lost everything. Feel like doing suicide 😭😭. No reason to live anymore. I left all my friends and family and used to stay glued to my laptop all day and night long. In the end just for nothing.
“Years wasted. Everything lost 😭 Came with nothing. Will go with nothing
If I survive today we’ll meet again. But looks like maybe my last day on Planet Earth.
“I have a single mother. I don’t know what will happen to her if I take this drastic step. Even she won’t be able to live. I failed you mom. Sorry mom. 😭😭 She is the only thing in my mind that is stopping otherwise no reason to live anymore
“I’m an utter failure in life. Can’t forgive myself for this grave mistake ever. Greed overpowered me and ruined me. Despite earning life changing wealth. I lost. I’m sorry mom. I failed you as a son.
“May God give me strength to overcome this loss and somehow pass this fateful day. I am just breaking down. I have no friends. I have no life outside of crypto this was all I had.
“Now this is gone too. It took me years to reach here but one night to erase everything 😭😭 There were so many sell signals Double Top on OTHERS.
“DRising 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. But I ignored everything and went giga long on $PEPE after coinbase announcement at local day high
“It was going against me I thought of closing it yesterday But I was tired and slept I thought I’ll monitor it tomorrow afresh after waking up But now it’s all gone.”
He added in a new post, “I am thankful to God. I just got saved today. 🙏Apparently, Binance doesn’t liquidate you 100% as the liquidation ratio is set at 83%.”
