how to short bitcoins, 3 easy steps

[chiropteran]

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.

[dadrizforshizz]

ehh, maybe not... as an economics student that chart looks real bubbly 

[ElectricMucus]

LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD.

you fail.

[chiropteran]

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

[ElectricMucus]

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.

[Kazu]

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.

[ruski]

Step 1: Buy bitcoins.

Troll/11.77487461

[chiropteran]

Step 1: Buy bitcoins.

Troll/11.77487461

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.

[Kazu]

Step 1: Buy bitcoins.

Troll/11.77487461

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

[dadrizforshizz]

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.....

[bitcool]

Sounds like financial masturbation.

[Ichthyo]

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.

[Spaceman_Spiff]

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...