How to Short Bitcoin - Advice from the Professional Trader

[andreassschmidt]

The cryptocurrency market is developing, that is why there appearing more and more ways to get profit. Some of them are easy and can be used by newcomers, and other ones are only for professionals because they require a lot of experience and are a bit risky.

To start with, you need to know that when investors short sell bitcoin on a crypto exchange, they sell a Bitcoin they don’t possess. To do that they borrow bitcoin from exchange margin lenders, while the position is open.
 
The whole point of going short on Bitcoin is to sell the asset with the hope that it will be redeemed soon for a lower price.
 
Here is an example: you sell borrowed Bitcoin when the price is $10,000. The price drops to $8,000. You repurchase the Bitcoin for $8,000 to return it to the lender.
 
And you make $2,000 ($10,000 - $8,000) out of thin air!

We have some more ways to short Bitcoin, so if you are interested in getting more information, check this article - https://safetrading.today/blog/how-to-short-bitcoin/

[ryzaadit]

The theory with reality will always easy to talk from the theory side and the reality always 90-95% was lost.

Take an example a popular trader future contract on Binance even with low leverage they still hit the big loss, "future contract" was not really a good option for a new trader and still better regular trade. If only trade under 1.000-10.000$ better to trade with a regular trade, because everyone still can be control their asset when the bearish coming and could be back up again in the next few minutes when a future contract can lose all the fund if the margin was hit.

Future more riskier than regular trade even you are trading with a huge fund, and the article did not mention that.

[terrong]

Borrowing funds and returning funds when the value goes down will be very risky because we cannot read the future, it is good if the value goes down but what happens if the value goes up?

As a new person in crypto (I have no knowledge in reading charts) I prefer to join in trading signals by paying a monthly fee and making profits little by little.

I have proven it and managed to cover the monthly costs with the profits I have accumulated, and the rest belongs to me.

[Xinarae*]

No one can predict the future of Bitcoin. It is not possible to give accurate information to get the market up and down you can hold on to the short bitcoin as long as there is a risk in the crypto market. If the price goes up you will make a profit and it is risky guides and charts will help you analyze the markets every step of the way. There are training videos that you can follow and learn from which are being recorded and uploaded. Be able to conduct business by executing agreements with various article sites.

[Insanerman]

The cryptocurrency market is developing, that is why there appearing more and more ways to get profit. Some of them are easy and can be used by newcomers, and other ones are only for professionals because they require a lot of experience and are a bit risky.

To start with, you need to know that when investors short sell bitcoin on a crypto exchange, they sell a Bitcoin they don’t possess. To do that they borrow bitcoin from exchange margin lenders, while the position is open.
 
The whole point of going short on Bitcoin is to sell the asset with the hope that it will be redeemed soon for a lower price.
 
Here is an example: you sell borrowed Bitcoin when the price is $10,000. The price drops to $8,000. You repurchase the Bitcoin for $8,000 to return it to the lender.
 
And you make $2,000 ($10,000 - $8,000) out of thin air!

Honestly, this isn't a verified way to trade at all. You cannot just expect that you can short instantly and earn for approx. 2,000USD by shorting bitcoin. Honestly, no one would ever lend you with a bearish market, as even lenders know how to trade as well, hence they are also aware that lending in a going down/red market would simply making them take the risk they never wanted. Trading, whether you buy at short or long, isn't an income out of thin air. Trading is a gradual income, which doesn't really give you time to breathe air at all, with the risk and tension with the volatile market.

Also, do you know that there are really less lenders that gives that huge 1BTC to anyone. Goodluck if you would found one, online.

[kamadazje]

This is very interesting if we are going to look it in a positive way but I wonder if many are into this because this action is still has a risk. As we know that every investment has a risk involve, if we say that you have sell borrowed bitcoin at 10k price but the price didn't drop instead it continues to increase because the market will not behave to what you are thinking that is why the market is very unpredictable therefore in the end you will end up losing instead of gaining.

I am only pointing the negative side of what you said though there are still possibilities that you can profit to this technique as long as you can hit the right time to sell and the right time to buy which is very difficult if you have no deeper knowledge about how the market works.

[andreassschmidt]

We don't say that everyone can just come and predict. This process requires experience, a lot of years of experience. The article shows it is possible, of course not all of the methods are very popular nowadays because they require not only the experience but the development of some additional programs.