What goes up, must come down?
Profit from decline by short selling Bitcoin
What is Shorting Bitcoin?
The aim of shorting Bitcoin, is profiting from a (temporary) decline in value using Bitcoin CFD’s or Futures. When the price of Bitcoin indeed goes down, the trader gains. If the price goes up, the trader loses. The profit, or loss, can be amplified by using margin or leverage. Another popular way to short Bitcoin, is by buying put options.
Shorting Bitcoin - The Possibilities:
Contract for differences (CFD) are similar to futures. Traders may short Bitcoin on regulated CFD platforms like Plus500 & IGmarkets.
Like in the stock market, call and put options enable traders to short Bitcoin, using put options. Two prominent markets are Deribit and OKX.
Bitcoin futures are traded on platforms like Kraken and BitMEX. Some brokers like eToro and TD Ameritrade also offer (short) future trading.
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