Ethereum Whale Lesson: How to Turn $150M to $300M
An Ethereum whale investor who held ETH for over two years has turned $150 million into over $300 million in ETH investments. The volatility inherent in cryptocurrencies is usually beneficial when met with investment intelligence. Here is how this whale managed this impressive feat and lessons both novices and seasoned investors can learn from it.
How an Ethereum Whale Doubled $150M
On September 3, 2022, whale investor 0x682A bought 96,639 ETH from Coinbase at an average Ethereum price of $1,567 and spent $151.2 million. 2022 was a bear winter year, characterized by falling prices and negative market sentiment. However, 0x682A spotted an opportunity to accumulate significant ETH at discount prices.
This is a smart diamond hand, buying $ETH in the bear market and selling $ETH in the bull market, making $131.72M!
This whale bought 96,639 $ETH($151.42M) from #Coinbase at $1,567 on Sept 3 and Sept 4, 2022.
Then deposited 70,000 $ETH($214.34M) at $3,062 to #Kraken since Mar… pic.twitter.com/yuAe5LMy7h
— Lookonchain (@lookonchain) September 22, 2024
0x682A decided to hold through the rest of the bear market, showing their strong conviction in the asset’s long-term value despite short-term volatility. When the bull market resumed in January 2024, the whale waited until March, near the peak, and offloaded 70,000 ETH at $3,062, worth $214.34 million at the current price.
0x682A still has 26,639 ETH left and may hold it for much longer as the Ethereum price prediction shows ETH may surge even higher by the end of the 2024 bull run. From selling the 70,000 ETH, 0x682A made a profit of approximately $104.65 million, nearly doubling his initial investment.
The remaining 26,639 ETH are worth $68.81 million, which, combined with the proceeds from the sale, reached around $283.15 million, the total value of the investment.
Lessons from ETH Smart Whale
Looking into the investment tactics used by whale investor 0x682A, a few clear lessons emerge.
Market Timing: The success of 0x682A was greatly influenced by the ability to notice the right time to enter the market—a bear season. Buying during a bear market and selling during a bull run can greatly amplify returns.
Patience: The crypto community would call 0x682A ‘diamond handed,’ which means the investor had a strong conviction in Ethereum’s long-term value. It shows a mature investor who has done due diligence and will not budge even during short-term price volatility.
Strategic Selling: Knowing when to sell can be the difference between huge profits and unrecoverable losses. For instance, this trader roundtripped $1.2 million in profits because he did not sell when the price was up. The whale’s decision to sell and book a portion of their holding maximized their profits while retaining a substantial stake in Ethereum for potential gains in the future.
Market Awareness: While this is not immediately noticed in the investor’s story, it is a subtle lesson that can be learned from his trading behavior. Keeping up with market trends and conditions is crucial. Developing the ability to recognize market shifts allowed 0x682A to capitalize on the price increase early this year.
The journey of 0x682A doubling his $150 million investment is an inspiring story for many investors. The lessons learned from his fund movements can help both seasoned and beginners corner the market and avoid unnecessary losses.
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