Handful of Times Cryptocurrency Traders Failed Placing Their Investments
To Five Fails In Crypto Trading
Crypto trading is a business that has gained popularity in the past few months. Recent spikes in prices have sparked interest in digital coins. However, there are many fat-finger trades taking place since most have never dealt with crypto. Here are the top five examples, which you can avoid in the future.
5. The BTC-e Bug
Back when BTC-e was the name of the exchange in 2015, someone caused the price of Bitcoin to drop briefly form $280 to just $55.12. At the time, $280 was considered a lot for Bitcoin. Compared to today it might seem like peanuts. There has never been an official explanation as to what caused the selloff. However, it was a good example of fat-finger trades.
4. The Gemini Bitcoin Pump
Most people often forget the Gemini exchange was around from the early days of crypto. In those days, the price of Bitcoin surged to $2,200 due to fat-finger trades. This was only a short spike that drove prices from $245 to $2,200 in a single major trade. It showed how important it was to places zeroes in the right place.
Human error is more common than most think. However, these spikes in price are not too common.
3. GDAX Cashes Ethereum
Although GDA changed its name, the platform has an interesting history with Ethereum trading. In June 2017, the price of Ethereum slumped suddenly on GDAX alone. This caused it to bottom out at $0.1. This was a major drop from $319, which is quite unusual. The incident alone caused a lot of people a lot of money.
What was evident was that it was not a fat-fingered trade. Rather it was an issue with GDAX itself. However, the initial blame was traced to a multimillion-dollar sell order. This eventually led to low buy orders to be filled when stop loss and margin traders were liquidated in quick succession. Despite this, the price of Ethereum rebounded quite fast on the exchange. Such an event has never occurred again on GDAX. It is unlikely that it will occur again in future unless someone makes a fat-finger trade.
2. The Viacoin Orderbook On Binance
When it comes to trading alt coins, things can deteriorate in just a few minutes. This is because these coins often have low liquidity. On Binance, a single trade triggered a 9,000% price increase of the Viacoin price. To achieve this, the single order bought nearly the entire order book. Rumors later resurfaced that there had been a hacking attempt. However, the exact explanation for the issue has never been given to the masses.
1. The $90,000 Price Of Bitcoin
2018 was an interesting year for crypto. One a small exchange in Thailand, the price of Bitcoin briefly spiked to $90,000 a few months ago. It is likely that this was a fat-fingered trade. However, achieving an ROI at such a price seems almost impossible in the near future. The only way it would happen if the price of bitcoin suddenly increased in price by ten times.