What is shorting in the cryptocurrency market?

1 answers

• Jan 05, 2022 · 3 years ago
  Shorting in the cryptocurrency market is a strategy used by experienced traders to profit from a declining market. It involves borrowing a cryptocurrency, selling it at the current market price, and then buying it back at a lower price to return it to the lender. The difference between the selling price and the buying price is the profit. Shorting can be done on various cryptocurrency exchanges, including BYDFi. However, it's important to note that shorting carries significant risks, as the price of the cryptocurrency can also go up, resulting in potential losses. Traders should carefully consider their risk tolerance and use proper risk management techniques when engaging in shorting activities.
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