A cryptocurrency wallet has used 10 million USDT to buy 2123.14 ETH at a price of 4,710 USD on-chain, and placed a limit sell order at 4,800 USD to take profit.
These trades occur after 10 days of adjustment, with an expected profit of 191 thousand USD if the sell order is executed. However, there remains an unrealized loss of 178 thousand USD that has not been realized.
MAIN CONTENT
A cryptocurrency wallet spent 10 million USDT to buy 2123.14 ETH at 4,710 USD/ETH.
The limit sell order is set at a price of 4,800 USD to generate a profit of 191 thousand USD.
There remains an unrealized loss of 178 thousand USD due to price fluctuations not being closed.
How has the cryptocurrency wallet conducted buy and sell transactions?
The cryptocurrency wallet being monitored with address 0x54d…e6029 has spent 10 million USDT to buy 2123.14 ETH on-chain at an average purchase price of 4,710 USD per ETH. The transaction took place after 10 days of market adjustment and was recorded two hours ago according to Vietnam time.
Buying ETH at this price reflects expectations for short-term price increases, thereby establishing a limit sell order at 4,800 USD to achieve an estimated profit of 191 thousand USD. This is a popular strategy in cryptocurrency trading that takes advantage of price fluctuations to generate profits.
What does a limit sell order mean in this investment strategy?
A limit sell order at 4,800 USD allows investors to take profits when the ETH price reaches this level without manual intervention. This is an effective risk management mechanism that automates profit-taking.
Placing orders is not only based on technical analysis but also a way to protect capital against unpredictable fluctuations. However, risks remain if the price does not reach this level, resulting in continued holding positions and exposure to price risk.
Why is there still an unrealized loss of 178 thousand USD despite having a profit-taking sell order?
Unrealized loss represents the portion of loss that has not been realized due to market price fluctuations. In this case, although the sell order has been placed at a higher price than the purchase price, the existing loss indicates that the ETH price may have temporarily decreased before recovering or has not reached the limit sell level.
This loss still affects the asset value in the wallet if there are no new moves like pushing sell orders or adjusting strategies. Investors need to closely monitor price movements and market trends to adjust accordingly.
Frequently Asked Questions
What is a cryptocurrency wallet and how does it work in trading?
A cryptocurrency wallet is a tool for storing and managing cryptocurrency assets, allowing transactions, holding, and tracking public on-chain investments.
What is a limit sell order and what are its benefits?
A limit sell order allows investors to set a desired price to sell automatically, optimizing profits and limiting risks when they cannot continuously monitor the market.
Why does unrealized loss occur in cryptocurrency investment?
Unrealized loss is a loss that has not been realized due to market price fluctuations not reaching the closing price or not being able to sell the asset.
What are the advantages of placing buy and sell orders on-chain?
On-chain trading provides transparency, speed, and minimizes fraud risk thanks to blockchain technology and smart contracts.
How to effectively monitor cryptocurrency price fluctuations?
Using technical analysis tools, monitoring market news, and on-chain trading statistics help investors make more accurate decisions.
Source: https://tintucbitcoin.com/investor-loses-178000-usd-eth/
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