How does buying short work in the world of digital currencies?

1 answers

• Dec 27, 2021 · 3 years ago
  Buying short in the world of digital currencies can be done on platforms like BYDFi. It involves borrowing a cryptocurrency from other users on the platform and selling it immediately. If the price of the borrowed cryptocurrency drops, you can repurchase it at a lower price and return it to the lender, making a profit. However, if the price increases, you'll have to buy it back at a higher price, resulting in a loss. It's important to carefully analyze the market and consider the risks before engaging in short-selling. Remember, short-selling is not suitable for everyone and should only be done by experienced traders who understand the risks involved.
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