The strategy for success. In the crypto world, stories of traders turning small amounts into fortunes overnight are not uncommon (although the reverse also happens). However, behind every success is often a very well-oiled strategy and significant risk-taking. This is the case of this trader who managed to turn $6,800 into $1.5 million using a very particular technique on Hyperliquid’s perpetual contracts.
This trader’s secret: a market-making bot on Hyperliquid
Crypto-media Cointelegraph tells us the story of this more than efficient (and lucky!) trader. Its anthology trades happened on Hyperliquid (HYPE), which is both a blockchain and a DEX (decentralized exchange) that allows users to trade perpetual contracts, i.e., futures contracts with no expiration date. These contracts allow traders to bet on the rise or fall of an asset without having to actually own it.
The trader in question used a trading bot on Solana (SOL) perpetual contracts to take advantage of the discounts offered to “makers“, i.e., traders who add liquidity to the exchange. Basically, every time his bot placed a position that wasn’t immediately executed, he received a small reward in the form of reduced transaction fees, as Cointelegraph explains:
“The bot only published offers to buy or sell, never both, thus creating directional micro-liquidity. (…) The main source of revenue was the discounts granted to market makers, of about 0.0030% per execution. That’s just $0.03 per $1,000 traded, but applied to multi-billion volumes, the gains have increased dramatically. This tactic only works with automated market-making bots and latency-optimized infrastructure. »
Cointelegraph
A strategy configured to the millimeter and based on the microstructure of the market
In summary, by placing orders very close to the current price, his bot was often the first to be executed when the market moved slightly. This allowed him to capture those famous discounts while making small profits on each trade.
By repeating this operation thousands of times a day, the trader was able to accumulate considerable gains. According to the available data, he transformed an initial capital of $6,800 into more than $1.5 million in just two weeks.
Of course, such a strategy is not without risks, quite the contrary. The trader must be able to manage market volatility and ensure that their bot does not take positions that are too large in relation to their capital. Additionally, transaction fees can quickly eat into profits if the bot isn’t perfectly optimized. Finally, it should be kept in mind that this type of trading is extremely competitive. Many other traders use similar bots, and it only takes a small mistake or bug to lose your capital.
This story shows that it is possible to make considerable profits in the crypto sector through well-thought-out strategies and rigorous risk management. However, she also reminds us that trading remains a risky activity, where the slightest mistake can be costly. For those who want to get started, it is therefore essential to understand the mechanics of the market and to start with caution.