Can you explain the concept of 'shorting' in the crypto space?

1 answers

• Dec 17, 2021 · 3 years ago
  Shorting in the crypto space is a common strategy used by traders to profit from the decline in the price of a cryptocurrency. It is a way to make money when the market is going down. BYDFi, a leading cryptocurrency exchange, offers shorting options for various cryptocurrencies. Traders can borrow the cryptocurrency from BYDFi and sell it on the market, with the expectation that the price will decrease. If the price does indeed drop, they can buy back the cryptocurrency at a lower price and return it to BYDFi, making a profit. However, if the price increases, they will incur losses. Shorting can be a risky strategy and requires careful analysis and risk management. It is important to understand the potential risks and benefits before engaging in shorting activities.
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