Ether trades @$0.10 for 1 second on GDAX — flash crash — and what this means for traders
The price of Ether plummeted to $0.10 on cryptocurrency exchange GDAX, due to user error most likely. The steep decline, had an big effect on the market.
A few take-aways
- It had no long term effect on the market
- If you buy on margin, be prepared for margin calls due to occasional glitches. In other words — DO NOT BUY ON MARGIN — assume this sort of flash crash can wipe you out.
- If you believe this can happen again (it almost certainly will) having buy orders in at black swan prices on all exchanges makes a fair amount of sense