The white hot cryptocurrency Ethereum went on a wild ride on Wednesday, plummeting from around $320 to around 10 cents in a so-called "flash crash." The price soon recovered but not before some investors took a terrible bath and some others made out like bandits.
Here's what happened.
Ethereum, a popular new digital currency, trades on exchanges much like its older rival bitcoin. The most widely-used exchange, Coinbase-owned GDAX, operates like a traditional stock exchange, and lets traders buy stock on margin and place so-called "stop loss" orders—an automated instruction to sell if the price falls below a certain point.
Read Complete Article