Inexperienced investor paid 100 000 $ per Litecoin
|Slavomír Kaňuk|source|2340x
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Inexperienced investor paid 100 000 $ per Litecoin

Somebody decided to market buy Litecoin on Paxos (PAX) trading pair, triggering the buy orders which were placed all the way up to $ 100 000 per litecoin. It appears, we are witnessing a very expensive mistake, this time on crypto exchange Binance.





As pointed out by popular cryptocurrency commentator and CEO of Three Arrows Capital Su Zhu, somebody has spent $100 000 worth of PAX per litecoin on Binance. The trader must have had substantial amount of money in his account and used Paxos, a popular stable coin which is dollar-pegged, instead of Tether. We can probably assume that the order was placed mistakenly. Inexperienced trader can easily make a mistake, which could potentially cost him a lot of money - the only way how to handle it is by learning.


Similar cases, are not total exceptions and happen from time to time. Just recently, bitcoin price plummeted by $1 000. This specific case could have caused large stop-loss zones and potentially close trader's deals and bring loss. However, if prudent traders placed buy orders low enough, those could fill up quickly.


Another case was popular cryptocurrency WAVES, which plummeted in april. This cryptocurrency was traded at $ 0,00052 at one point, before it got back to its normal price. It's turning out it might be a lucrative strategy to buy cryptocurrencies at ultra-low prices.

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