For investors who believe that bitcoin is likely to crash at some point in the future, cutting the currency might be a good option, here’s how you can do that.

Margin Trading

One of the easiest ways to short bitcoin is through cryptocurrency margin trading platforms.Many exchanges allow this type of trading, with trades that allow investors to “borrow” funds from a broker to “short” bitcoins. Make a trade. It’s important to remember that there may be a leverage factor that could increase your profits or losses. Many Bitcoin exchanges allow margin trading at this stage, with BitMex, AvaTrade, and Plus500 being some popular options.

 

important points

  • For those who want to short sell their Bitcoin to profit when prices go down, there are few options available to you.
  • Forex contracts such as options or futures can expose you in the short term, including through the facilities available to crypto exchanges.
  • Bitcoin price can fluctuate and fluctuate abruptly. Short selling is risky in any asset but can be dangerous especially in the unregulated crypto market.

 

Futures

Bitcoin, like any other asset, has a futures market. In futures, the buyer agrees to buy a security with a contract that specifies the time and price of the security to be sold. If you buy a futures contract, you will feel that the price of the security will increase. Things This ensures that you will get a good security later on, however if you sell the futures contract it shows a negative attitude and the prediction that bitcoin will drop in price. Merkle says selling futures contracts is a great way to go short on bitcoin. Known place to buy and sell Bitcoin futures

 

Binary Options Trading

The call and hang option also allows people to short bitcoin, if you want the currency to go short you will need to execute an order, there may be a contract service which means you will be able to sell the currency at today’s price. Yes, although the price will drop later, Binary Options are available through many international exchanges. but cost (and the risk) is high

-73.56%

Dollar returns for Bitcoin in 2018. After plunging from an all-time high of nearly $20,000 to below $3,000 a few months later, from January 1 to May 4, the price of Bitcoin has increased 55% in 2019.

 

Prediction market

Forecasting markets are another way to consider discounting. shortcoin They haven’t been around for long in the world of cryptocurrencies, but they can be assets for shortening currencies like cryptocurrencies. These bitcoin markets allow investors to create events to bet on the outcome of a match, so you can predict if bitcoin will drop by a certain rate or percentage and if anyone puts you into a bet you will earn a profit. If it passes, Predictious is one example of a predictive market for bitcoin.

 

Bitcoin asset short

While this may not appeal to all investors, But those who are actually interested in buying and selling bitcoin can sell the currency directly, sell the tokens at the price you are comfortable with, wait until the price drops and then buy the tokens again, of course if the price does not adjust as you expected, you can lose. money or lose bitcoin assets in the process.

Article Source – Investopedia.com