How does being short in the context of digital currencies work?

1 answers

• May 04, 2022 · 3 years ago
  Shorting digital currencies is a common practice in the cryptocurrency market. It allows traders to profit from both rising and falling prices. When shorting a cryptocurrency, traders borrow the digital asset from a lender and sell it on the market, with the expectation of buying it back at a lower price in the future. The difference between the selling price and the buying price is the trader's profit. Shorting can be a useful tool for hedging against market downturns or speculating on price movements. However, it's important to be aware of the risks involved, as the market can be unpredictable and prices can change rapidly. Traders should always conduct thorough research and analysis before engaging in short selling.
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