The 'Get Rich or Get Wiped Out' Crypto Trade Is Tested — WSJ
By Gunjan BanerjiU.S. stocks staged a big rebound to kick off the week, recouping some of Friday's losses. Some crypto investors are likely still nursing big losses.Many traders had amped up their crypto bets this year, taking extreme leverage through the perpetual futures market (read more about the boom-or-bust trades here).Mainstream brokerages and exchanges have made moves to expand access to these products in the U.S. Coinbase, for example, recently launched perpetual futures that allow traders to magnify their returns by up to 10 times their initial investment.The bigger potential for gains means that when cryptocurrencies drop sharply, as they did Friday, the losses are bigger as well. Traders can lose their entire investment if the market turns against them.The crypto wagers aren't the only ones that can go to zero. As WSJ's Spencer Jakab pointed out this morning, one leveraged exchange-traded product tied to Advanced Micro Devices collapsed last week, leaving traders with nothing.This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).