How does shorting digital assets like Ethereum work?

3 answers

• Shreevardhan BhosaleApr 09, 2022 · 3 years ago
  Shorting digital assets like Ethereum involves borrowing the asset from a broker and selling it on the market with the expectation that its price will decline. If the price does drop, you can buy back the asset at a lower price, return it to the broker, and keep the difference as profit. However, if the price goes up, you'll have to buy back the asset at a higher price, resulting in a loss. Shorting can be risky, as there's no limit to how much the price can rise.
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• Gismille MalolasAug 25, 2022 · 3 years ago
  When you short digital assets like Ethereum, you're essentially betting on its price going down. You borrow the asset, sell it at the current market price, and hope to buy it back at a lower price in the future. If your prediction is correct, you make a profit. However, if the price goes up instead, you'll incur a loss. Shorting can be a way to profit from a falling market, but it's important to carefully consider the risks involved.
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• Larsson TerrellJun 22, 2022 · 3 years ago
  Shorting digital assets like Ethereum is a common strategy used by traders to profit from a declining market. BYDFi, a popular cryptocurrency exchange, offers shorting options for various digital assets including Ethereum. Traders can borrow Ethereum from BYDFi, sell it at the current market price, and buy it back at a lower price to return it. This allows them to profit from the price difference. However, it's important to note that shorting carries its own risks and should be approached with caution.
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