Bitcoin Trader Makes 1 Million in Seconds on Epic Trade

Epic Flash Crash Makes a Million For 1 Trader

If you want to get rich in Bitcoin, here is a story for you. Ethereum is a secondary cryptocurrency like Bitcoin. Like Bitcoin, Ethereum is a purely digital currency and has been in a bull rush so far in 2017. But it’s also very volatile currency like Bitcoin and suffers from the ups and downs on the trading floor.

One day the price of Ethereum crashed from $300 to less than 1 dollar and 1 lucky trader had in an order to capitalize on this ‘Flash Crash’. Exactly how much did he make from this glitch? How about a cool 1 million US dollars.

On June 22, 2017 at 12:30 pm PST the price of Ether (Ethereum) was at $300.00 a share. These shares are traded on GDAX – which is a currency exchange made exclusively for Bitcoin-like currencies. Suddenly the price of Ether went down from $300 to $0.10. That’s right – $0.10!!!

Later on, officials at GDAX said a trader may have made a trader error and made a multi-million dollar order to sell which caused the crash. In the chaos that ensued all computers also sold off Ether in an automated ‘sell’ order program. Many traders instantly lose millions of dollars.

But 1 smart and lucky trader had a ‘buy’ order to buy close to 3,809 shares if Ether ever went down to that $1 dollar level, and sure enough, he got those shares.

In a few minutes, all the sanity came back online and the price of Ether was back to $300.00. Which meant the trader instantly turned his shares of $0.10 shares of Ether into $300 per shares and made over a million dollars instantly – if he then sold his shares at the $300 share price.

Pros and Cons of Bitcoin

The lesson learned is that flash crashes may happen but with this type of currency, it’s more extreme. And GDAX, the trading exchange that was in charge of this trading will not be issuing refunds or changing any trades. Any trader that had a sell order triggered in that downward flash crash lost their Ether and minds.

The official explanation from GDAX about the flash crash:

Our initial investigations show no indication of wrongdoing or account takeovers. We understand this event can be frustrating for our customers. Our matching engine operated as intended throughout this event and trading with advanced features like margin always carries inherent risk.

We are continuing to conduct a thorough investigation and will keep customers updated with any resulting actions.

 

But the positive is if you’re a big believer in this new form of currency and are opportunistic enough, you can make money.

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