Trader Turns $2.5K Into $200K by Buying XRP With 500X Leverage

The position was dangerously close to liquidation before XRP moved to the upside.

Dec 11, 2024, 11:09 a.m. UTC

A trader turned $2,500 into $200,000 by buying XRP futures with 500x leverage on cryptocurrency exchange Rollbit on Tuesday.

XRP jumped by 26% during U.S. trading hours after Ripple Labs, the company behind XRP, received “final” regulatory approval to offer the RLUSD stablecoin in the U.S.

The savvy trader opened a position worth $2,560 when XRP was trading at $1.9025 and the amount of leverage meant that the position would have been liquidated if price slumped below $1.9004. The position was closed gradually between $2.13 and $2.29, netting a realized return of around 7,500%.

XRP is trading at $2.34 as it continues to outperform the wider market. It is up by 301% in the past 30-days, TradingView data shows.

It's worth noting that trading with 500x leverage is a tremendous risk as the volatile nature of cryptocurrencies means that the position will be liquidated most of the time. Rollbit's XRP market has racked up $186 million worth of volume over the past 24-hours and offers up to 1000x leverage.

Oliver Knight

Oliver Knight joined CoinDesk as a news reporter in April 2022. Before joining CoinDesk, Knight was the Chief Reporter at Coin Rivet for three years. Having graduated with a journalism degree from Birmingham City University, Knight went on to work at various sports publications before diving into the world of Bitcoin in 2014. He does not have any crypto holdings.