$BTC ๐ป What Is Shorting Bitcoin?
Shorting BTC means betting that its price will go down. You borrow Bitcoin and sell it at the current price, hoping to buy it back later at a lower price and return it, keeping the difference as profit.
โ๏ธ How It Works (Basic Steps):
Borrow BTC from an exchange or broker (margin account).
Sell the borrowed BTC at the current market price.
Wait for the price to drop.
Buy back the BTC at the lower price.
Return the borrowed BTC.
Profit = Selling price โ Buying price โ Fees
๐งฎ Example:
You short 1 BTC at $65,000
Price drops to $60,000
You buy back 1 BTC at $60,000
Profit: $5,000 (minus fees/interest)
๐ Where to Short BTC:
Exchanges:
Binance
Bybit
Kraken
Bitfinex
Deribit
Brokers:
eToro
Interactive Brokers (via BTC futures or ETFs)
Decentralized Platforms:
Aave (via collateralized positions)
๐ ๏ธ Instruments for Shorting:
Margin Trading
Futures Contracts
Options
Inverse ETFs
CFDs (Contract for Difference)
โ ๏ธ Risks:
Unlimited Losses (if BTC price rises instead of falls)
Liquidation risk (if using leverage)
Interest on borrowed funds
High volatility
