Whale @qwatio with high leveraged positions on BTC, ETH, SOL, and XRP was partially liquidated when the market began to recover.
The unrealized profit of this whale once reached 12 million USD but then dropped sharply to 1.3 million USD, according to Onchain Lens tracking data on August 4.
MAIN CONTENT
Whale @qwatio uses leverage from 20x to 40x for major coins.
Part of the position was liquidated when the market began to recover.
Unrealized profit once reached 12 million USD, now only about 1.3 million USD.
Why were the leveraged positions of whale @qwatio liquidated when the market recovered?
According to a report from Onchain Lens on August 4, the high leveraged positions of whale @qwatio on BTC (40x), ETH (25x), SOL (20x), and XRP (20x) were partially liquidated due to price fluctuations. This phenomenon occurred right when the market showed signs of recovery, causing the leveraged orders to be margin called and liquidated.
Using high leverage increases profits but also raises the risk of liquidation when prices fluctuate sharply. This is real evidence of the potential for significant volatility in the cryptocurrency market and the importance of risk management when trading with leverage.
How has the unrealized profit of whale @qwatio changed in recent times?
Stabilizing unrealized profit is a challenge for all whales trading with leverage. Whale @qwatio once had unrealized profits of up to 12 million USD but then dropped sharply to 1.3 million USD when part of the position was liquidated.
The significant reduction in profit reflects market volatility pressure, while also showing the inherent risks of using high leverage on various cryptocurrencies like BTC, ETH, SOL, and XRP, especially during short-term market recoveries.
The liquidation of leveraged positions when the market recovers shows that the risk of trading with leverage is extremely high and highlights the importance of risk management in cryptocurrency trading.
Cryptocurrency market analyst, 2024
Frequently Asked Questions
1. Why are whales using high leverage more prone to liquidation?
High leverage increases risk when the market is volatile, causing liquidation due to insufficient collateral to secure the order.
2. What is unrealized profit in leveraged trading?
Unrealized profit is the profit that has not been realized, which can increase or decrease according to market price fluctuations.
3. How to manage risk when trading with leverage?
Setting leverage limits, closely monitoring price fluctuations, and using stop-loss tools are effective risk management strategies.
4. Does market recovery necessarily cause liquidation of leveraged orders?
Depending on the position and entry price, strong fluctuations including recoveries can also trigger liquidations.
5. What data does Onchain Lens provide?
Onchain Lens monitors trading activities, liquidations, and the on-chain position volatility of cryptocurrency whales.
Source: https://tintucbitcoin.com/ca-voi-qwatio-lo-con-13-trieu-usd/
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