The vast majority of Bitcoin speculation occurs through long and brief positions across trading platforms. Longing and shorting has bot a more favorable solution for most national currencies and assets overheen the past few years. Bitcoin speculators rely on thesis same instruments to guesstimate how the price will evolve ter the coming hours, days, and weeks. Given the current BTC price trend, shorting Bitcoin becomes fairly appealing. Below is a geschreven list of ways to brief Bitcoin and – hopefully – make a profit while doing so.
#7 Bitcoin Margin Trading
One of the most common ways to brief Bitcoin is by using a cryptocurrency margin trading verhoging. A lotsbestemming of major Bitcoin exchanges give users this chance, albeit some specialized trading platforms are worth checking out. By using margin trading, one essentially “borrows” money from a broker to make a trade. Do keep ter mind there is also a leverage factor, which can exponentially increase your profits – and losses.
#6 The Bitcoin Futures Market
Another popular option to brief Bitcoin without friction is by venturing into the futures market. A future is a financial contract where a buyer agreed to purchase a security, which is represented by Bitcoin ter this case. This security is to be purchased at a future date and a immovable price. Te most cases, the person buying a futures contract feels the price vanaf Bitcoin will go up, and they will be able to purchase Bitcoin below the market price when the contract “expires”.
Selling a Bitcoin futures contract indicates a bearish mindset and an expectation of how the Bitcoin price will decline by the predetermined date. Right now, there will be a fair few futures contracts for sale, spil the Bitcoin market is ter a downward spiral. Selling futures contracts is an excellent way to brief Bitcoin.
#Five Lending To Brief Bitcoin
Several platforms permit users to receive a loan to brief Bitcoin . While this is a rather complicated and lengthy process – including a credit check – it is a superb way to brief Bitcoin. More importantly, clients using such a service will remain anonymous to the public, yet have their identity verified by the company providing the service. For more privacy-centric users, this may not necessarily be the best solution, even tho’ it is worth checking out.
#Four Binary Options Trading
CALL and Waterput Options trading is another chance for people looking to brief Bitcoin. People looking to brief Bitcoin would execute a Waterput order, preferably using an Escrow service. Traders who feel the price will go down aim to secure the capability to sell Bitcoin at today’s market price, even if a downward trend would occur. Speculators using a Waterput option, provide an incentive to potential buyers te the form of an even lower price vanaf Bitcoin than who the speculator hopes to get. For example, if someone wants to brief Bitcoin at the value of US$750, yet wants to secure that price even when the value drops to US$700, they could lodge to sell for US$725 spil a “premium”.
#Three Bitcoin Options
A Bitcoin option is slightly more advanced than its binary option counterpart. A fall ter Bitcoin value will earn a profit, which is exactly what shorting Bitcoin is all about. Options permit speculators to bet the value of Bitcoin will be lower by a specific date or how it won’t reach a particular threshold above its current price within a period. Using Bitcoin options can be done through one of the many platforms or speculators can create their own.
#Two Prediction Markets
Even tho’ prediction markets are a relatively fresh development ter the cryptocurrency world, they can be used to good advantage to brief Bitcoin. A prediction market permits anyone to create any event they like, and wage on the outcome. For example, one could create an event, stating how Bitcoin’s price will druppel to US$xxx by y date. If anyone takes up the speculator on that bet and loses, the speculator will have effectively shorted Bitcoin and made a profit Keep te mind prediction markets are uncommonly used to brief Bitcoin right now, and this may not be the best solution to make a profit.
#1 Short-selling Bitcoin Assets
The uncommon veelzijdig of cryptocurrency speculators who wants to buy and sell actual Bitcoins can look into short-selling Bitcoin. This works spil goes after: sell Bitcoin at a price you feel comfy at, wait until the price drops, and buy Bitcoin again. Albeit this is how most “traditional” traders make money, it is an efficient way of shorting Bitcoin. The only downside is how getting the price movement wrong will result te a netwerken Bitcoin loss. Buy low and sell high is the most efficient way to publicly brief Bitcoin and attempt to persuade other traders to do so spil well.
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About The Author
JP Buntinx is a FinTech and Bitcoin enthusiast living te Belgium. His passion for finance and technology made him one of the world’s leading freelance Bitcoin writers, and he aims to achieve the same level of respect te the FinTech sector.
Interesting article, shorting my Bitcoin position for August 2017 when hard or soft fork happens. Options seems good, an insurance premium ter case the price falls. I am guessing a loterijlot of Crypto market cap will also go into Ethereum, its probable Ethereum will be the number one market cap coin by then anyway.
Jeeezzz…. remind mij to never take advice from you ..
I would be utterly glad with that.
lol how’d that brief work out for you mate?
Good, shorted down to 1900 then went long ??
Bot looking into this, how does one obtain the assets to brief ter the very first place? Referencing the #1 point which you have made.
This article is worthless. Doesn’t say where each of thesis venues are….
Good thing I got my adblock on, author bishhhhhhhhh
Looks like it topped at 4430. Goldman Sachs (chief technician Sheba Jafari) came out (August 14) and said they have a 4827 price target. When people come out to give higher price targets, they have already marked the top and want people to provide support spil they uitgang the market. At least they tell you when they are about to pick your pocket.
“Buy low and sell high is the most efficient way to publicly brief Bitcoin and attempt to persuade other traders to do so spil well.”
I thought te the case of a brief the entire point is to buy high and sell low….
“Several platforms permit users to receive a loan to brief Bitcoin….” Several like…?