Any guidance on shorting BTC or altcoins?
Hi guys. due to recent bullish run on market, i realised many people have earned a lot from shorting bitcoin.
I wonder how exactly it is done? By buying low and selling at high? what if the price goes lower than your buying price and
goes higher than your selling price?
Some advised to buy and hold and avoid taking risk at all.
What are your thoughts on this?
Shorting is to win money in a bear market.
It's done by borrowing BTC when price is high and selling them at this price.
Once the price dropped enough for you, you buy back the same numbers of BTC, but for a lower price. You give them back to the owner (+ a fee), and keep the difference.
In practice this is all automatized and you only have to click on the short/sell button. It is usually done with leverage, so be careful.
You can short at bitfinex, wex, and poloniex.
Thanks.