The trader made $4.23 million despite winning only nine times out of 31 times they have traded ETH.
An Ethereum trader who frequently bought and sold Ether (ETH) in recent weeks lost a significant amount of money over a short period, but there’s a catch.
According to Lookonchain monitoring, the trader has made three losing trades in the past five days, totaling $1.47 million in losses.
Frequent trading is very dangerous!
A trader frequently traded 3 times in the past 5 days and lost money each time, with a total loss of $1.47M!
This trader has traded $ETH 31 times in total and won 9 times, with a winning rate of only 29%, but the total profit is $4.23M.
The… pic.twitter.com/NYQaosyHS1
— Lookonchain (@lookonchain) March 23, 2024
However, despite the recent losses, the trader has profited significantly from their ETH investment overall.
The Details
On-chain data revealed that this trader had bought and sold ETH 31 times. Out of this, they only won nine times (a win rate of just 29%), with a total profit across all trades totaling $4.23 million.
Interestingly, the Lookonchain analysis revealed that the trader’s biggest win came from a single long-term hold. According to the analysis, the trader purchased ETH and held it for one year before selling it to cash out a profit of around $6.5 million.
Long-Term Holders Always Win
“It seems that long-term holding is more profitable than short-term holding,” the on-chain analyst said on X (Twitter).
This story highlights frequent trading risks and suggests that long-term holders always win. Nevertheless, this is just one example, and reverse might be the case for others.
In line with the broader cryptocurrency market, the price of ETH has been on a rollercoaster in recent weeks, fueled by declining investor enthusiasm and negative news surrounding the potential approval of spot Ethereum exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC).
At one point this month, the price of ETH went from $3,873 to hit a multi-year high of $4,003. However, the token soon fell sharply to $3,430, alongside a 38% decline in trading volume.
Data from CoinStats shows that ETH has declined by 14% over the past two weeks and 8% since last week. At press time, ETH traded around $3,368, representing a 1.6% drop in the past 24 hours.
