How does short selling a digital asset work in the cryptocurrency market?

1 answers

• May 04, 2022 · 3 years ago
  Short selling a digital asset in the cryptocurrency market can be done on platforms like BYDFi. It involves borrowing the asset and selling it on the market, with the expectation that its price will decrease. If the price does go down, you can buy back the asset at a lower price and return it to the platform, making a profit. However, if the price goes up, you will incur a loss and need to buy back the asset at a higher price. It's important to carefully consider the risks and potential rewards before engaging in short selling.
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