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Title: how to short bitcoins, 3 easy steps Post by: chiropteran on April 13, 2013, 11:22:44 PM I don't know why people think it's so hard or think you need some special trading platform to do it.
Step 1: buy bitcoins at price A, as an early adopter Step 2: lend bitcoins to yourself, and sell at price B Step 3: buy back those bitcoins lent to yourself, preferably at a lower price than B If you didn't already buy bitcoin as an early adopter, buy coins now, and then wait 2-3 years before moving on to step 2, as I am certain current coin prices will feel like early adopter prices by then. Title: Re: how to short bitcoins, 3 easy steps Post by: dadrizforshizz on April 13, 2013, 11:28:38 PM ehh, maybe not... as an economics student that chart looks real bubbly ???
Title: Re: how to short bitcoins, 3 easy steps Post by: ElectricMucus on April 13, 2013, 11:30:57 PM LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD.
you fail. Title: Re: how to short bitcoins, 3 easy steps Post by: chiropteran on April 13, 2013, 11:32:57 PM LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD. you fail. I have no idea what you are even talking about. I am describing a way to short bitcoin, that doesn't require bitfinex or any other service. It also has 0 interest :) Title: Re: how to short bitcoins, 3 easy steps Post by: ElectricMucus on April 13, 2013, 11:34:31 PM LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD. you fail. I have no idea what you are even talking about. I am describing a way to short bitcoin, that doesn't require bitfinex or any other service. It also has 0 interest :) No you are trolling. Title: Re: how to short bitcoins, 3 easy steps Post by: Kazu on April 13, 2013, 11:36:49 PM I don't know why people think it's so hard or think you need some special trading platform to do it. Step 1: buy bitcoins at price A, as an early adopter Step 2: lend bitcoins to yourself, and sell at price B Step 3: buy back those bitcoins lent to yourself, preferably at a lower price than B If you didn't already buy bitcoin as an early adopter, buy coins now, and then wait 2-3 years before moving on to step 2, as I am certain current coin prices will feel like early adopter prices by then. Honestly this is how I've been playing the market since Wednesday. -Sell Coins -Buy back Lower (hopefully) -If it goes up pick a "stop loss" and buy back in again at that price. -think of it like shorting. Title: Re: how to short bitcoins, 3 easy steps Post by: ruski on April 13, 2013, 11:41:38 PM Title: Re: how to short bitcoins, 3 easy steps Post by: chiropteran on April 14, 2013, 12:24:37 AM Why is that a problem? Look, here is how the math works out. You pay $95 each for 10 bitcoin, 950 total You sell your 10 bitcoin, gain 950 dollars. When finished with your short, you buy those 10 bitcoin back. If you were a smart bear, you can buy the 10 bitcoin for less than $950, and see a net gain. Title: Re: how to short bitcoins, 3 easy steps Post by: Kazu on April 14, 2013, 12:34:26 AM Why is that a problem? Look, here is how the math works out. You pay $95 each for 10 bitcoin, 950 total You sell your 10 bitcoin, gain 950 dollars. When finished with your short, you buy those 10 bitcoin back. If you were a smart bear, you can buy the 10 bitcoin for less than $950, and see a net gain. Or if you were a smart bull, you could buy more than those 10 bitcoin back :) Title: Re: how to short bitcoins, 3 easy steps Post by: dadrizforshizz on April 14, 2013, 12:42:02 AM the only TRUE way to short bitcoins would be to issue guarantees or contracts (options contracts) stating you will pay a certain number bitcoins and interest. bitcoins fall below contract price, you scoop em up on the cheap and you have made a profit shorting.....
Title: Re: how to short bitcoins, 3 easy steps Post by: bitcool on April 14, 2013, 12:47:02 AM Sounds like financial masturbation.
Title: Re: how to short bitcoins, 3 easy steps Post by: Ichthyo on April 14, 2013, 01:38:24 AM gentlemen, we're nitpicking here.
OP is right insofar you can profit from falling rates by selling an asset/instrument and buying back more at lower rate. but OP is using the term "shorting" in a sloppy way. Used more precisely, "going short" means to engage into a short position, which is constructed in a specific way (some derivative, contracts for difference, futures, options,...) and typically includes some degree of leverage. Title: Re: how to short bitcoins, 3 easy steps Post by: Spaceman_Spiff on April 14, 2013, 09:03:37 AM Once again the term 'shorting' gets misused by talking about simply selling your assets, instead of the real term which implies borrowing an asset you don't own from somebody else...
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