92.000 #btc short position 91.999 $BTC

I will short for a correction!!!

Factors to consider when shorting Bitcoin

Like any strategy involving cryptocurrency, shorting Bitcoin carries significant risks. There are several aspects you should consider when shorting Bitcoin.

Bitcoin price volatility

Most ways to short Bitcoin depend on derivative products. These derivative products are based on prices; the price volatility of cryptocurrency has a domino effect on the profits and losses of the investor.

For example, Bitcoin futures mimic changes in spot prices, meaning they cannot be used as an effective hedge against actual Bitcoin investments. Similarly, trading options in Bitcoin can amplify losses due to the price volatility of the underlying cryptocurrency.