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How does going short on a cryptocurrency work?

avatarHolck BekDec 27, 2021 · 3 years ago1 answers

Can you explain the process of going short on a cryptocurrency in detail? How does it work and what are the steps involved?

How does going short on a cryptocurrency work?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    At BYDFi, going short on a cryptocurrency works in a similar way. You can borrow the cryptocurrency from the exchange and sell it at the current market price. When the price drops, you can buy it back at a lower price and return it to the exchange. BYDFi provides a user-friendly interface for short selling, allowing traders to easily open and close short positions. However, it's important to remember that short selling carries risks, and it's crucial to have a solid trading strategy and risk management plan in place. Always stay updated with the market trends and news to make informed trading decisions.