The user converted and leveraged a large amount of ETH to open a massive leveraged position in the cryptocurrency market.
MAIN CONTENT
The user converted 125,000 ETH to 6.99 million USD.
Withdraw 130,000 USDC equivalent to 125,000 USD from Hyperliquid.
Open a long position of 3,694 ETH with 25 times leverage, worth 15.75 million USD.
How did the account perform ETH conversion transactions?
This user has converted over 125,000 ETH to USD equivalent to 6.99 million USD according to Ember's monitoring data on August 20.
The conversion of a large amount of ETH to USD demonstrates effective digital asset management, facilitating the next steps in an in-depth investment strategy in the cryptocurrency market.
This conversion step allows users to flexibly use capital for higher leverage investment forms on derivative exchanges.
Why did the user withdraw 130,000 USDC from Hyperliquid, and what does this amount mean?
The user withdrew 130,000 USDC equivalent to 125,000 USD in order to use it for other financial activities on the Hyperliquid platform.
This amount is considered the principal, separated from the profits earned, reflecting a risk management strategy by retaining profits for continued investment.
This action contributes to maintaining personal liquidity while maximizing earned profits, a common method in capital management for professional investors.
How was the detailed long position of 3,694 ETH with 25x leverage created?
The user used the remaining profit of 640,000 USD to open a long position of 3,694 ETH at a price of 4,272 USD with 25 times leverage, with a total position value of about 15.75 million USD.
Using 25x leverage indicates a high-risk trading strategy aimed at maximizing ETH price fluctuations to increase profits.
The liquidation price of this position is 4,183 USD, representing a tight stop-loss point to help control risk during significant market fluctuations.
Opening a position with high leverage requires strict risk control to limit significant losses, especially in highly volatile markets.
Cryptocurrency trading expert Nguyen Van An, 2024.
Frequently Asked Questions
What does a long position mean in cryptocurrency trading?
A long position is a bet that the asset price will rise, with traders buying in to profit when the price increases.
How does 25x leverage affect trading risk?
25x leverage increases profit levels but also means the risk of significant losses is much greater when prices fluctuate in the opposite direction.
How to calculate the liquidation price in leveraged trading?
The liquidation price is calculated based on the asset price dropping to a point where the account no longer has enough margin, usually determined specifically by the trader or the platform.
Why should capital be separated from profit when investing?
Separating the principal helps protect the initial amount, reducing the risk of losing all capital when the market fluctuates, while using profits to expand investments.
What is Hyperliquid and is it reputable?
Hyperliquid is a cryptocurrency derivatives exchange that offers high leverage, a platform widely used by investors due to its flexibility and fast trading.
Source: https://tintucbitcoin.com/mo-long-3-694-eth-don-bay-25x/
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