This crypto trader just lost $1 million overnight on Binance

A crypto trader reportedly lost $1 million in USDT overnight, trading the meme coin PEPE with Binance‘s margin leverage. This story represents the untold reality of many other traders who rarely get to the headlines.

The trader goes by the pseudonym Crypto Nerd on X (formerly Twitter) and reported his losses on April 13.

In particular, Crypto Nerd explained he opened a 3x-leverage long position on PEPE, with $1 million worth of Tether’s stablecoin USDT. The dramatic outcome gets worse considering the memecoin trader has less than $1,000 in his banking account, as reported.

“Just woke up and realised I got liquidated overnight. I was 3x long PEPE. I lost everything I had. I don’t even have $1000 in my bank account but had $1M in Binance. I have been in crypto since 2017. Today I lost everything,” he posted.

Binance wallet account. Source: X/Crypto Nerd

Cryptocurrency trading: Loud winners and silent losers

Crypto Nerd‘s story is one of many others that remain untold due to the human nature of publicly celebrating their victories while hiding their failures.

For that reason, most of the cryptocurrency market headlines are made of bullish winning stories. These reports usually highlight how someone profited millions of dollars in a few days with promising tokens or meme coins.

Recently, Finbold reported how a Solana trader turned $35,000 into $9 million in 2 hours and how another one made $1 million trading a meme coin in a few minutes.

Nevertheless, researchers point out that the vast majority of traders and speculators are mostly losing against a few profitable players. As usual, the market is made of loud winners and silent losers, giving un unprecise perception of reality.

Crypto traders’ $1 billion liquidations

Notably, the recent nearly $1 billion liquidations reported this morning demonstrate the staggering amount of what cryptocurrency traders can lose. At this specific event, close to 300,000 traders had a similar experience to Crypto Nerd.

Liquidation Heatmap. Source:CoingGlass

Of these, $248 million happened while trading ‘other’ cryptocurrencies, like PEPE, instead of the usual Bitcoin (BTC) and Ethereum (ETH) dominating liquidations.

In closing, crypto traders must understand the inherent risks of opening leveraged positions. Millions of dollars can vanish in a matter of seconds in the financial world. Hence, the importance of using proper risk management strategies and avoiding weak fundamental assets like meme coins.