Here's how an altcoin trader turned $500 into $200,000 within two months


  • Pseudonymous trader on crypto Twitter publicly reported his journey to nearly 21,000% gains in a Twitter thread.
  • The trader alternated between top cryptocurrencies and altcoins, booking profits along the way.
  • Litecoin, Bitcoin and Serum triggered 102.8% appreciation in the trader's portfolio.

A trader on crypto Twitter turned six-digit profits in "The Degen Challenge" that he started in July 2021. 

21,000% gains within two months, RektProof books massive gains

Pseudonymous trader @RektProof started a thread on crypto Twitter and documented every trade, from the time when the account balance was $500, to reaching over $214,000. 

The trader refers to "The Degen Challenge," slang for high-risk trading without due diligence and research. The term was coined in The WallStreetBets forum on Reddit, where just over a million traders referred to themselves as "degenerates." 

Twitter is flooded with traders turning three-digit profits through the purchase and sale of NFTs. @RektProof, however, opened positions in Bitcoin, Ethereum, Litecoin, Serum and other altcoins in high-risk trades. 

The trader kicked off the challenge with a long Ethereum trade. With two long positions within one week, @RektProof earned 42% in unrealized gains. The play-to-earn gaming token Axie Infinity (AXS) was next on his list of longs. 

By the end of month one, @RektProof was sitting on an excess of $12,000 in profits, 40 times gains floating on the account and open long positions in Polygon (MATIC) and Internet Computer (ICP). 

The most critical trade was a long position on Serum, the native asset of the decentralized exchange on Solana, which pushed @RektProof's portfolio gains to three digits, 100 times. 

The trader admitted that he would not recommend his high-risk moves to others. He booked over 21,000% in profits within more than sixty days. 

The latest trends in cryptocurrencies like Nyan Cats on Arbitrum fractionalized NFTs, liquidity mining, and yield farming have fueled the narrative of booking massive gains through "degen trading."

In the crypto market flash crash on September 7, 92% of long positions were liquidated. Futures and margin traders made bigger bets on their portfolios, borrowing capital from multiple exchanges. Historically, when longs are overleveraged, there is a correction in Bitcoin price, and tens of thousands of traders are liquidated out of their positions. 

A "degenerate trader" would then capitalize on the opportunity of accumulating crypto assets through a dip ahead of recovery. 

In his recent Bitcoin price analysis, @RektCapital, a cryptocurrency trader and analyst has pointed out that BTC has developed a Golden Cross pattern. 

Moving averages are considered predictors of Golden Cross, a pattern in which a relatively short-term moving average crosses above a long-term moving average. Considered a long-term indicator, they indicate a bull market when accompanied by high trading volumes. 

@RektCapital points out that there are false crosses in the ongoing rally, and that the most recent Golden Cross may be invalidated in the future. 

If Bitcoin holds above $29,000 psychologically significant support level, the bullish uptrend is likely to hold. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets take off without clear goals

Bitcoin price suffered two fatal blows, one on September 7 and another from September 19 to September 21. These two downswings pushed the big crypto down to a critical support floor.

More Bitcoin News

DOGE price explodes following massive spike in Dogecoin and Shiba Inu holders

Dogecoin and Shiba Inu have increased in popularity over the past few weeks. The SHIB community continues to petition for the memecoin’s listing on Robinhood, the commission-free exchange. 

More Dogecoin News

XRP price to breakout by 25% to the upside

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple behaves as it trades above support.

More Ripple news

VeChain Price Forecast: VET bulls charge ahead for 25% gain

VeChain price (VET) witnessed a flash crash for the second time in September as Bitcoin and the cryptocurrency market at large tumbled on September 19 and September 20.

More VeChain News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP