Can you explain the process of selling short on popular cryptocurrency exchanges?

1 answers

• Kern KofodNov 11, 2020 · 5 years ago
  Selling short on popular cryptocurrency exchanges, such as BYDFi, allows traders to profit from a declining market. Traders can borrow cryptocurrencies from the exchange and sell them at the current market price. If the price drops, they can buy back the cryptocurrencies at a lower price and return them to the exchange, making a profit. However, if the price goes up, they will have to buy back the cryptocurrencies at a higher price, resulting in a loss. It's a strategy that requires careful analysis and risk management to be successful.
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