Do you want to learn how to short Bitcoins? If yes, then this guide is all you need.
Shorting Bitcoin is a good option for those who believe that soon there will be a fall in the currency graph. It is for the investor to remain on the safe side. But some investors hesitate to do so because they lack the knowledge of short selling.
Keep the worries aside as this guide will walk you through the question of how to short Bitcoins.
What is Short Selling?
Investors use the term short selling, also known as short in the finance industry, to earn a profit from the commodity when they believe it will be down soon. To know more, click here https://www.delta.exchange/blog/the-ultimate-guide-to-shorting-bitcoin
How Does it Work?
Now you must have started wondering about its working. Well, in the process of short selling, one can borrow Bitcoins from a broker or an investor at a specified price to sell them and then buy them again. In simple words, you purchase the stocks afterward and return them to the brokerage or person who loaned them to you. The point behind this purchasing and reselling is the gut feeling that the value will be decreased by the time one repurchase it.
Let’s understand the complete process. For example, suppose a person short sells 5 Bitcoins at the price of $3000. This means a person is borrowing the 5 Bitcoins and selling them back at $18000. Now the price of Bitcoin drops to $2000. … READ MORE ...