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Position trader profits $13 million (345%) with the 'Nvidia of crypto'

source-logo  finbold.com 26 May 2024 17:27, UTC

A position trader has booked an estimated $13.2 million (345%) profit in seven months of buying and holding patiently. Render (RNDR)—this position trade’s cryptocurrency, became known as the “Nvidia of crypto”—creating a decentralized network of GPU rendering.

Notably, SpotOnChain reported the seven-month position trade that started with a 1.69 million RNDR purchase on Coinbase. The withdrawals happened between November 2 and November 10, 2023. At that time, this position was valued at around $3.83 million, with Render priced at $2.265 on average.

This trader became dormant for seven months after building the position, waiting patiently for the best time to sell. Interestingly, the whale missed Render’s price top in March but remained still even during a significant crash in April.

The trader decided to take profits as the price recovered, moving their whole Render stack to Coinbase on May 24. In particular, the 1.69 million RNDR were priced at $17.03 million by the time of the activity. Thus, the position trader’s estimated profit was $13.2 million, up 345% from the initial investment in November last year.

What is position trading, and how does it benefit traders?

Position trading is a long-term strategy that involves holding positions for weeks, months, or even years.

This approach allows traders to capitalize on significant market trends and capture substantial profits over time. By focusing on the bigger picture, position traders can avoid the noise and volatility of short-term price fluctuations.

Moreover, this strategy requires less time and effort compared to other trading styles, such as day trading. Position traders can conduct thorough research and analysis to identify high-quality assets with strong fundamentals and growth potential.

Additionally, by holding positions for extended periods, position traders can benefit from compound returns and potentially lower transaction costs. However, it’s essential to manage risk effectively and have patience when employing this strategy.

RNDR: The ‘Nvidia of crypto’ price analysis

Render has been dubbed the “Nvidia of crypto” due to its strong performance and alignment with AI and GPU sectors. The RNDR token saw a 345% increase from November 2023 to May 2024, driven by the market’s interest in AI-related assets.

Furthermore, Render’s decentralized GPU rendering solutions democratize access to high-quality rendering, mirroring Nvidia’s impact on the gaming industry. The growing demand for GPU-intensive applications aligns with Render’s focus on providing GPU computing power for various tasks.

As of May 26, RNDR had a market cap of $3.9 billion, trading at $10.15, indicating significant growth potential and investor confidence.

Position traders have looked into the “Nvidia of crypto” for solid investments that are now rendering fruits.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.