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

  1. It had no long term effect on the market
  2. 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.
  3. 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
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