Bitcoin Short Selling: A Quick Overview
Short selling Bitcoin (BTC) is a trading strategy used to profit from a decline in its price. It involves borrowing BTC, selling it at the current market price, and then buying it back at a lower price to return to the lender—pocketing the difference.
Traders can short BTC through platforms like Binance, Bybit, or via futures contracts and options. While potentially profitable during bearish markets, shorting is risky due to Bitcoin's volatility. Losses can be unlimited if the price rises instead of falling.
Key Points:
Profit from falling BTC prices
Involves high risk and leverage
Requires careful risk management
Ideal for experienced traders, shorting should be approached with caution.