How to Short Bitcoin

What is Shorting Bitcoin?

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Buy Low, Sell High … Always!

Both “short selling” and “long selling” involve exactly what we’ve been talking about … buying something when the price is low and selling it when the price is high so you can make a profit.

What is Long Selling?

“Long selling,” “going long” or having a “long position” is the traditional way to work investments — you profit from rising prices. You buy a stock or other asset when it’s low, keep it until you make a profit and don’t foresee it rising further, then sell it off and pocket the difference.

Bitcoin Price History

The price of bitcoin has been as low as practically nothing, and as high as almost $50,000. So, if you had acquired 100 BTC in 2009 and sold it when it hit that first record high of $20,000 in 2017, you would have made $2 million. In fact, a lot of millionaires were made out of the early bitcoin miners. But … many people predicted at the time that it would go much higher, and it didn’t (at least, not right away).

What is Short Selling?

Shorting (also called “short selling”) involves profiting from a dropping price. So, you basically sell your asset off when the price starts declining, and buy it back again when it drops (hopefully when it bottoms out). In essence, you’re betting against the asset — expecting it to fall — instead of betting for it.

What is Shorting Bitcoin?

Shorting bitcoin is mostly about taking advantage of its volatility. If you look at a graph of its value over the years, you’ll see a lot of ups and downs in the short term. But overall, if you zoom back and look at the whole curve, it goes up.

The world’s leading operator of two-way Digital Currency Machines (DCMs), more advanced Bitcoin ATMs.

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