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

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.