How does buying short work in the world of digital currencies?

Can you explain how the process of buying short works in the world of digital currencies? What are the steps involved and how does it differ from traditional buying?

1 answers
- Buying short in the world of digital currencies can be done on platforms like BYDFi. It involves borrowing a cryptocurrency from other users on the platform and selling it immediately. If the price of the borrowed cryptocurrency drops, you can repurchase it at a lower price and return it to the lender, making a profit. However, if the price increases, you'll have to buy it back at a higher price, resulting in a loss. It's important to carefully analyze the market and consider the risks before engaging in short-selling. Remember, short-selling is not suitable for everyone and should only be done by experienced traders who understand the risks involved.
Mar 18, 2022 · 3 years ago
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