What is the meaning of en corto in the context of cryptocurrency?

3 answers

• May 07, 2022 · 3 years ago
  In the context of cryptocurrency, 'en corto' refers to the act of short selling. It is a trading strategy where an investor borrows a cryptocurrency and sells it on the market with the expectation that its price will decrease. The investor then buys back the cryptocurrency at a lower price, returns it to the lender, and profits from the price difference. Short selling can be a risky strategy, as the price of the cryptocurrency can also increase, resulting in potential losses for the investor.
  497

  249
• May 07, 2022 · 3 years ago
  When it comes to cryptocurrency, 'en corto' means short selling. It's like betting against a cryptocurrency's price. You borrow the cryptocurrency, sell it at the current market price, and hope to buy it back at a lower price in the future. If the price drops, you make a profit. If the price goes up, you may incur losses. Short selling can be a way to profit from a falling market, but it's important to understand the risks involved.
  436

  146
• May 07, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that 'en corto' in the context of cryptocurrency refers to short selling. It is a common trading strategy used by investors to profit from a decline in the price of a cryptocurrency. By borrowing and selling the cryptocurrency at the current market price, investors can potentially buy it back at a lower price in the future, returning it to the lender and pocketing the price difference. However, it's important to note that short selling carries risks and requires careful consideration.
  540

  135