Bitcoin Forum

If you dont understand marginal trading, check out my Medium Post: Understanding Marginal Trading (http://www.goo.gl/ijC5NT).


I see a lot of people are interested in shorting, however I would advise against it. The market is acting irrational, and people are investing in obvious "shit coins". Shorting a coin that you think is over evaluated is not a good idea, because it can continue to be over evaluated, tons of people are investing in awful coins that have NO utility. So even if you are right, you are playing a dangerous game and when you factor in risk management it likely isn't a good idea. Thoughts?

Shorting requires you to join a platform that allows margin trading and deposit some bitcoin or whatever coin you want to short into your account as collateral.Some platforms like bitfinex offer leverage at 1:3 or more but be warned keep that margin trading can generate much larger losses than traditional trading. Although there are margin call limits in place in most cases, it does not mean that you cant lose more money than you actually have in your account.

i found this in google what sorting is,now i know how it works.

Lots of people short in the stock market, and then moved it to crypto currency. However right now since we are still extremely early I would recommend to not short for the above reasons.

Given the volatility of cryptos, even if you put in a stop loss order in place, it might gap down past that price and leave you with a big loss.

Which is why I would recommend to not short

we must evaluate whatever we are going to do.
because otherwise we only get the loss of all the foolish acts we do
I suggest to kitan play safe in trading
because losing money from trading is very painful because we can not play our fund as in gambling

Depend how you choose your trading pairs and are you willing to panic on every tick.

I'm successfully shorting mid-volume alts from months. And I like the game. It's fun and profitable.

Like I said, you can be successful but with your risk management strategy do you not see the dangerous effects? I think it is generally a good idea to stay away from it because the market is to irrational.

this is very dangerous move for the casual traders,it has a higher risk in losing your money between if you can face the consequences why not? if you want to gain $3M dollars in 6hrs and and you can risk your $1M losing in just 3hrs then go.

This is a very dangerous tool, not everyone can afford to use it wisely. such people are one unit.

I tried to short all with varying degrees of success. And where it turned out it was because of the advice of professional traders. And who say that it is very risky.

If you give advice then you can try to short sell. Let's say 40%. But for this we need to understand the market. Let's say BITCOIN is falling and you znete that Novosel background is poor and he can still fall. You sell. But you have to be sure that this is just a correction and the price is still then go up

You explain the things very well. I am fully agree with your views. But how to identify undervalued coins.

Thanks I appreciate the comment. If you are interested in learning how to evaluate a coin, I have a youtube channel and posted a helpful video : https://www.youtube.com/watch?v=LLwHkIKhddw&t=0s

PM me if you have any questions, or you can search for my first thread which contains my official thread for the channel.

IMHO, now would be a good time to short altcoins. With the way bitcoin is surging upwards, we can expect that more people will hear and read about it then consequently invest in bitcoin for fear of missing out. Bitcoin still has more pump behind it. Just short your altcoins now and buy more of them later once bitcoin price has stabilized even just a little

Hi and Welcome to Bitcoin Forum!  :)

Shorting is much riskier than buying stocks, or what’s known as taking a long position. When you buy shares of company, you obviously hope they will rise in the short term or over a long period or maybe that they will just provide dividend income.
If you have a short position, there’s no limit to how much money you can lose if the shares rise. If the share price increases soon after you place a short position, you could quickly “cover” by buying back the shares and returning them to the investor you borrowed them from. If you’re lucky, you might not lose very much but novody knows future so one should avoid shorting!

I agree which is why people should not be shorting :)

Does anyone else have anything to add to this, or disagree? I would like to read some more peoples comments.

The market right now is a perfect example of why you shouldn't be shorting.

Does anyone else have an opinions of the margin market? ( in regards to cryptocurrency )

That's how the business works, so...Why not if you can make a several amount of $$$ from such shorting?

I still do not understand. Do you like this author? He invested in this coin? And why did he choose this one out of a thousand coins?

I agree. I remember that I have invested many times in shitcoins just because I see them very alive in the marketcap and always on the top 30 gainers but now I'm smarter than before but shorting is still good as long as it's a decent coin.

Yes it's true many people moved to cryptocurrency because it fast in transaction, However there are many reason to not short in trading and depositing in bitcoin. 

So your saying we should be longing? :P

Agree. Simply saying, don't go against the market. The market is actively growing, all price drops we have seen so far are just corrections.

For the moment, I'm not suggesting shorting because the bull market is still going to continue, and no one should give up this opportunity, be it bitcoin or altcoin.

Profit Taking, corrections to come.

Why not earn on margin trading and shorting bitcoin when i know it will go down for sure,its a way for me to earn even on the price fall out like we had after futures as everyone knew that price will go down and they just stand and watch while they lose money...Yes margin trading isnt for everyone but when you learn how it works its a good way to earn on price action

Shorting in cryptos is not like shorting in stock markets, because fundamentals in cryptos are almost non existent and shorting becomes a pure gamble, much more risky IMHO.

Yes I agree, it doesn't make much sense to do so. I see a lot of people talking about it, and thinking they understand how it works when in reality they dont.

Does anyone here actually margin trade? If you dont, I would urge you to take the course in the OP ( I created it ) to test your knowledge of it. 100% free

Yes, this is a useful reference for learning. But do all people really want to learn? Who thinks logically and wants to first study the topic / market, and only then invest, they will find a lot of information in Internet for training. But more than half of people do not want to know anything, understand, teach. They want easy money. They went to the site, they liked the pictures, they saw a bonus of + 50%. And it's all. Many of this is enough to give money to scammers. This is ICO, a similar situation on stock exchanges. They saw growth, bought in the hope that the growth will continue and lost, as a decline. Then these same people will shout that the world is cryptocurrency is a bubble.

You should have knowledge of marginal trading if you are into investing. It isnt something a beginner should get into, but it is useful if you are experienced. As cryptocurrency grows and becomes a little more "stabilized" it will get popular. There will always be people who want quick money, which is why there will be losers in the market. You cant make money if someone isnt losing money.

I don't think all shorting is bad. It depends on what you are holding. If you know clearly that the coin will go down quickly, you'd better dump it in a short term. So it all deoends.

Hey, OP!

Thanks for sharing. It was a very interesting article.

Holding those coins which can be dumped is not a best option, shorting of coins that don't have community support is best.

Of course it depends on the exact situation, but in cryptocurrency even if you are profiting you are making a mistake. Kinda like how people read charts and make triangles, 20% that is likely skill while the other 80% is bs.


Thanks I appreciate it :) If you have a medium account make sure to follow, or bookmark my articles for more!



Which is why you should only be buying good coins, and make intelligent investments. You dont have to "hodl" which isnt even a good strategy. However you can hold it until something changes in the news, market,road map etc that would lead you to believe in a drop.

Totally agree, with shorting you can always miss the train and great chance to be on it.

I wouldnt even try and marginal trade with cryptocurrency period right now, way to hyper and way to many shit coins like Bitconnect are still running.

This can be very true yes.

I completely agree with the fact that short-term orders are very risky, especially if you do this during the correction period, in the community generally do not greatly respect this kind of action as far as I understand it

The only coin I've ever got burned on shorting is ETH and that's because that market is completely irrational even compared to alts in general! :)

Probably it should be added that short-term investments are not a way to earn money, it's probably more like a casino or something related to gambling. That in its essence does not apply to crypto-currencies, because each crypto currency has its own way.

I certainly wouldn't short ETH. Think about a coin like Bitconnect, I wouldnt even recommend shorting it because look how long it took for people to actually figure out it was a scam and for it to crash. The market is insane right now.

Firstly marginal trading is already a very risky thing to do and i agree that every minute the BTC market can behave either up or down..... but i will suggest that if you want to short, do your homework well before you want to execute any move.

Yes of course :) I am going to wait a long time though before I marginal trade. The market needs to calm down a bit.

I had to hold an ETH short for 3 months and had to buy my margin up a few times but I eventually got paid. It was hairy a few times but everything that goes up must come down eventually.

I counted that just holding coins i earn more than i tried to short) You have understand what are you doing and have a lot of time to spend enough on market. But if you are good in it so why not?

My article covers alot of it. Of course you should do more research, but I think my Medium post is a good start.




Even if you are making money right now, you arent making intelligent trades. The market is very irrational, and so your risk management is not in a good position. I wouldn't say you are getting "lucky" but you are not making smart choices. Until the market calms down, and coins like Bitconnect arent getting $2b in funding marginal trading really shouldnt be attempted.

You are right, we can not risk our fund which is very important to our family just is trading.
Do everything that we have the evaluation first because its very important to do.

Hahaha shorting in a market like this would be absolutely stupid.. lol

I understand where you're coming from, but in this space, the markets won't calm down, or may do so just for a short while then it's back to crazy again. It's still the wild west. So actually, if you can manage the risk, and you're doing well with shorting, then why not?

I agree and wouldn't think of shorting because it may never go down to the point that you shorted at.

On the other hand in this market I would feel comfortable going long because given enough time I think most coins will rise again (assuming you are going long on a solid coin) it's just a matter of how much interest will you be paying until it reaches a profitable position again

this is true I was long during the BCC fork and it cost me max for about a week when all the lending dried up. I found out the hard way when I got home that Plo doesn't renew at the amount you set and even then doesn't auto renew when a lower rate appears. I was pretty pissed at that. Max interest there can kill you.

it really is necessary that you should not be satisfied with the shortest of the time you enter into a business and the signature campaign and whatever else you will get, just as you can.

Most likely you can deal with short-term investments or perhaps better call it the opening and closing of orders on coins or tokens that have a regular sinusoid in the chart, but there is always a possibility that it will go down and it will fall, so it is very difficult to be sure.

ARE YOU A BOT?

BEEP BOOOT

Thank you author, for this article. It is always pleasant to meet a person who will share his experience and even clearly tell. at least with a link and to another site ... but thanks =)

OP There's no need to do it for me also because before the price of the coins here become really high but it's take time so i say you only need to buy/sell in that time even no margin you can easily click you phone to sell.I think there's no need to margin your coins because the price is really volatile so for me ig depends of the situation of the coins like if the coins stay only in the price of 0.004 btc to 0.0048 btc only.

I actually got a lot of good info from this thread which i was curious about, so thanks!

Thanks I appreciate it :)

Shorting would be paying off really well lately all the alts have been in the red for quit awhile now, really the only ones not worth shorting are top projects and even those are paying off. Ripple is a great example of a overpriced centralized manipulated cap coin that needs to die.

Anyone shorting this shit? You can't even pick a loser, short anything and your good!

Margin trading is more effective when the market is stable and the bitcoin's going to bull run,surely it is easier to predict while when the bears are present you will have less chance to win a trade.

This is certainly not the right move.

It certainly was and then it was perfect time to buy as I stated in the speculation thread. :D

margin trading is extremely risky especially in crypto market. why would i risk all my money by margin trading. I mean normal trading is enough profitable for me here. Bitcoin price is totally unpredictable now and it is impossible to make a clear decision about it.

In my opinion margin trading is like dangerous stunt. But too many people think they are stuntmen and tries to make this stunt without prepairing and without equipment. We all know how this can end.

Correct, it's not for n00bs you have to be in this space for quite some time and don't think you can jump from a stock or forex market and be able to play in this sandbox. :D

For people who can do it and especially for people who already have experience in shorting - this is the best way to check their skill and earn extra money on falling market :)
But most people of those who read this topic and write hear(most, not all) - they are not that kind of people.
And imo we should warn them to save their money and not try shorting if thay even cant trade normally :)

  the short sale of a stock means to bet on stock price descending. Before taking on this investment, so should fully understand the danger of this because I hurry you more you never realize what my significance as determined.

Futures markets are very hard to make money, although the big trend is down, but you are also likely to lose money.

I prefer to invest in the medium term, I try to buy coins when they are at the bottom of the stock exchange and keep to a high price.

This was a hint not to short yesterday. :)


https://poloniex.com/exchange#btc_xmr

Shorting is a very risky procedure or operation, call it what you want, but it's more like a casino, because the margin trading on the stock exchange is really the most like a casino, it's better never to do it, because the exchange will not lose.

Day trading is a very dangerous occupation because it requires strong nerves, and a focus on the process of trading throughout the day  :o

Shorting is such a normal thing in that area. It is not bad if you know what you are doing, also it is an experience if you do wrong

It is not very liquid to open a short position today, because bitcoin today has bullish sentiments, so it's not necessary to talk about short positions, if we talk about margin trading, then only about long positions on growth. But this is just my opinion and I do not call anyone to do it, so do not listen to me

Major risk of short selling is the fear of infinite losses. While the maximum loss for a long investor is the amount invested in a security, the maximum loss for a short seller is theoretically infinite, since there is no upper limit to a stock’s price appreciation. This risk is compounded by the fact that during a short squeeze or buy-in, the short seller may be forced to cover the short position at an artificially high price that may only be temporary in nature.

IMO, shorting is a tool to earn money during for traders. If you are know what you are doing, you could have earn good profits by shorting, especially during the time when a coin is dumping.

Of course, some people will make money from it, but as a general rule of thumb, you shouldn't. Unless you are a professional like you mentioned.

There is a time and place for everything but, I would not be shorting right now.

One downside to cryptocurrency sometime is it's ability to attract lambo kids and get rich quick folks! It amaze me how people want to suddenly make millions in matter of days in cryptocurrency! I think the Op has giving very sound and good advice, it is now left to you to use it or throw it away!

Thanks man I appreciate the comment :)

Good explanation, actually there is another type of FOMO, for example I didn't short BCN in time and I lost my 3/4 money on that, it's ok cuz the money is very little, but everybody need to know the right time for short or long, which is impossible, so there must be losing traders who feeds winning traders always.

The risk of shorting is greater. If you are a newbie and want to go short to get more coins, the failure rate will be higher in the big case, unless you are very lucky.
I think it is better not to be short.

It's called gambling my friend, we all know it's a risk but it's a high risk/ high reward risk. :D

Operation There's no compelling reason to do it for me additionally on the grounds that before the cost of the coins here turn out to be extremely high yet it's require investment so I say you just need to purchase/offer in that time even no edge you can without much of a stretch snap you telephone to sell.I believe there's no compelling reason to edge your coins in light of the fact that the cost is extremely unpredictable so for me ig depends of the circumstance of the coins like if the coins remain just in the cost of 0.004 btc to 0.0048 btc as it were.

Margin trading is for people that knows what they are doing; if you are not an expert and can't have full control of your emotions don't go into Margin trading; shorting is a good way to make money during bear market

You say it is a delicious risk :D Indeed I agree with you, that's why we all here and trading all the time.

For the moment, I'm not proposing shorting epitomizing the shuck choices is each the added ephemeral to linger on activity behind, and no solitary should deed up this opportunity, be it bitcoin or altcoin.

For what reason not win on edge exchanging and shorting bitcoin when I know it will go down for sure,its a path for me to win even on the value drop out like we had after prospects as everybody realized that cost will go down and they simply stand and watch while they lose money...Yes edge exchanging isnt for everybody except when you figure out how it functions its a decent method to gain on value activity

Shouldn't shorting be for a more stable market? The crytocurrency industry is widely known for its volatility and I wouldn't recommend shorting for anyone. It is quite a risky thing to do, and don't venture into except you are looking towards losing your funds or you are certain that you fully have mastered your way round it.

I guess it is basal to discovery any superadded indentures on the Internet to discovery the or bookish jerk virtually support to your inquiry or to dispose interested in specialists in this matter

Oh, great advice, except that someone shorting this week would have made a huge profit, since everything is down. I would advise to understand and use shorting instruments.

Just because something is profitable doesnt mean the right decision was made. This is a hard concept to learn because people are super results oriented. You can make a bad investment or a bad trade and make money. However, in the long term it's not the best play. Example: You could have invested in verge early on and make a ton of money, however the coin/token itself was shit. Luck plays a role in investing sometimes. Shorting is okay if you know the risks and know what your doing, but it should be done by professionals.

Shorting is risky and dangerous but holding your coins on a bearish market is even more risky. In fact the whole crypto investing is risky.. Shorting your coins help you to save the value of your coins if you are doing it smart.

I think that spot is more suitable for investors, and leverage is too risky, which may cause investors to go bankrupt in an instant, so this is why I don't choose leverage trading. I hope that novices will not participate in leveraged trading.

This is not for someone like me as I haven't find my way around trading because ijust don't know how ,believe me I've tried ,wish I could have a mentor for few tutors, so basically I don't know what shorting even means

trading always has risks. what you say is true because that can cause investors to lose money very quickly. but if they get a profit they can also get a very large amount of trade. all depends on how we can deal with the risks that exist.

Big risk, big profit, that's the law. You are right, the risk can be reduced by good analytical techniques and strategies. If we understand some indicators to analyze price movements so that we get the right position and timing, it's a gift.

I prefer to use the stop-loss feature rather than margin, because it is more risky. But I highly recommend to using margins if you are able to analyze the graphic chart accurately. This feature is also very helpful for traders who don't have a lot of capital, because your capital will be multiplied.

Well this topic didn't age well did it? :D

Cryptomarket is unpredictable. And I think it's really hard to know where the price will go. If you want to try margin trading, it's better to choose bitmex exchange but there are only several top altcoins on it

Yeah same here. I have been doing it but only the local exchanges will going to earn because of its huge transaction fee that reaches to 5% of the trade you will going to make and the fee's will not end on converting fiat money to crypto or crypto to fiat but also when you cash out money another fee's will be taken away from you. So there is no good in trading or marginal trading.

Margin trading or shorting is not for small traders and I never suggest to try it as this market volatility is very big and you can lose all your money in one go. It is better that you can do some trading with strict stop losses.

It seems to me that trading in the cryptocurrency market is less of a risk 3bl a healthy market situation. But today the risks are increasing several times, and it is better to wait a certain time and not risk your assets in vain.

aren't all coins in the crypto market dangerous? in the context of what you are talking about, we all even invest in a coin that is of no use at all. because coins do not have any use to buy anything and so far only spinning and trading in their own markets.

Here, it’s probably not quite profitable to short, because it makes sense to really say that the situations that form great opportunities in the market are work against the majority. That is, if most people think that Bitcoin will grow, it will fall.