Bitcoins make people money regardless if they long or short. How to short a bitcoin is a question of 2019. In 2020 it will stay relevant. So, why and how to short a bitcoin?
To-do list how to short a bitcoin:
Choose a way how do you want to short a bitcoin
Traditional short-selling or derivatives market-trading?
Manage your risk
There are plenty of factors affect the currency rate. Choice a relevant strategy to manage it.
Open the first position and monitor
Finally, start it and control the situation
What is shorting?
Shorting is selling expecting the price will fall down and then it will be possible to purchase assets back by a lower price. In fact, almost half of all the professional brokers work this way. Now, when a lot of experts expect the BTC rate will continue to fall down, the strategy is especially relevant.
How does it work?
It’s almost as simple as to make money when your asset grows: you borrow a bitcoin, sell it and purchase back in order to return. The price gap is all yours.
Shorting bitcoin. Methods
Bitlevex offers an opportunity to buy a bitcoin option. You may purchase a right to trade a bitcoin by a specific price by certain expiry date. This method works in case you expect some concrete direction of price change after some concrete time passed.
CDF: Contract for Difference
Instead of borrowing BTC you may just pay the price difference. If the price decreases, you pay a negative amount. In other words, you get paid.
Bitcoin futures: CME/CBOE
Futures make you deal about the price of an asset now regardless of how much it will actually cost then.
So, if you expect the price will fall down, just keep it on mind making a decision. If you will be right, you will earn.
Is it possible to earn from Bitcoin Shorting as much as from Bitcoin Longing? How much can I earn?
It is. In fact, even more. It’s quite obvious to invest in something grow, but much fewer people earn from prices fall. Looks like you are one of them. Congratulations.
If you are sure BTC will lose 7% its price, you will earn approximately 70$ from each 1000 invested. Sounds good, is not it? Actually the term can be even shorter and the gap can be wider.
Can’t wait to start earning? Then choose the option