Last night's XRP flash price dropped by 13 cents on the popular margin trading platform BitMEX.
Widespread complaints fluctuated in the crypto community, as traders with long XRP in the stock market were liquidated and lost their money. But every trade always has two sides, and those who are ready can double their money in seconds.
XRP Flash Crashes 13 Marts on Margin Trading Platform BitMEX
Volatility, Bitcoin, and many individual altcoins have made huge, parabolic rallies, returning to the crypto market greatly.
The rallies in the crypto market have reached over 50% or higher returns to date, and in some cases altcoins are above 400%.
Related Resources | Ready to Take Off: Two-Year Downtrend Explosion May Cause $ 14 XRP
However, volatility can make trading difficult, especially on trading platforms that offer leverage. Leverage allows investors to “regulate” their transactions using borrowed funds, which allows their capital to take much larger positions than they would normally allow.
This leads to even greater returns on successful trades, but can also increase the risk with the same extreme factor;
This is what the price of the XRP flash dropped from 32 cents to just 13 cents in seconds within BitMEX.
Traders in the crypto space were liquidated because strong moves were skipped over the stops, or because the move was too strong, stopping was not triggered until almost all accounts were deleted.
However, crypto traders who have caught volatility complain about their losses, so tragedies are another trader's lifetime trade.
Some lucky trader made fluctuation only 100% per second pic.twitter.com/6ofxzb7dzk
– Bran (@CryptoBran_) February 13, 2020
Every trade has two sides, a buy and a sell order. Just like those who lose a significant amount of funds in the XRP flash accident, those who are ready for orders and waiting at low prices, can double their money in seconds.
When the XRP price wick reached extreme lows, it would not only trigger stopping losses of long positions, but would also trigger the limit orders of those waiting to buy lower prices.
Are You Ready to Profit From Crypto Flash Crashes?
In the past, other assets have collapsed the flash, Ethereum flash hit ten cents in GDAX in 2017 among the most memorable ones.
During excessive movement, traders Altcoin just to buy the penny.
(Embed) https://www.youtube.com/watch?v=VZqQ8UzY8fQ (/ embed)
To avoid such problems, certain failures are often fulfilled, and often exchanges return users who are particularly caught in severe flash accidents.
The situation is a sure reminder to avoid taking more risks in crypto trading than you can afford to lose, because the market can always make an unexpected and strong return.
Related Resources | Industry's Strongest Man: Only 1 in 1000 Crypto
Another recommendation from this situation is to keep a small amount of capital ready with ultra low limit orders if there is a flash crash and you are lucky. You can find yourself trading XRP for a lifetime.