How do i short bitcoin?
Asking yourself “how do I short bitcoin”? Find out here!
1. Direct Short Selling
The easiest and simplest way for you to short sell bitcoins is to sell it off at a price that you are comfortable with. The objective here is to wait for the bitcoin value to drop and buy the bitcoin again for the much lower price.
2. Margin Trading
Most traders like to short sell bitcoin by utilizing a margin trading platform for cryptos. With this method, you will borrow money from a certain broken, trade and hope that your bet actually pays off.
3. Futures Trading
Futures market also allows you to short sell bitcoins. Future is a contract. You agree to purchase bitcoins at a coming date for a fixed price.
Your hopes here is for the price of the bitcoin to go up, so when your contract expires, you get to buy the bitcoin at below the market price.
4. Binary Options Tradings
Options trading involving the “put” and “call” choices is another great way to short sell bitcoins.
With a put contract, you are allowed to sell a specific amount of bitcoin at a certain price at a certain time which is also called the strike price.
Now, the put option will receive value as the bitcoin loses value when compared to this strike price. Furthermore, you are not mandated to sell your option if you don’t want to.
A call contract, on the other hand, gives you the right to buy shares in the same way. You can buy a specific amount of bitcoins at a specific price until a specific date.