如何做空加密貨幣：在崩盤或回撤期間證明這一點

如何做空加密貨幣：在崩盤或回撤期間證明這一點

由 CoinUnited.io 研究團隊

21 Apr 2023

14 分鐘閱讀

Shorting cryptocurrency is the practice of selling it at a high price with the intention of repurchasing it at a lower price in the future, ideally under circumstances when a currency's price is anticipated to decline. Because you are "short" the cryptocurrency, short selling is what it is called. The cryptocurrency that you want to earn from is not truly yours. You must be familiar with cryptocurrency long and short positions in order to comprehend shorting. When you go long, it means that you are purchasing cryptocurrencies with the expectation that their market value will increase. Take Ethereum as an example; you purchase it for $1,000 and forecast a price of $1,200. On the other side, shorting is borrowing a cryptocurrency and selling it at the current market price, anticipating a decline in its value. When the price of the cryptocurrency drops or rises again, you buy it again and benefit from the difference between your selling and buying prices.

Here's an illustration: Making money off the value drop of an asset is possible through shorting. Therefore, when anticipating a decline in the market value of a cryptocurrency, traders may choose to engage in shorting. Since cryptocurrencies are frequently unexpected, shorting the market is a dangerous tactic. Of course there is a chance for gains, but given the volatility of the market, there is also a chance for big loses. Although it seldom goes to zero when you hold a long position, the price of the cryptocurrency may decline. Even if you don't make any money, your initial investment is still there, and you may hold onto your cryptocurrency until, hopefully, its price starts to grow once more. The price of a cryptocurrency might continue to grow while you are shorting it, increasing your losses. Therefore, before shorting an asset, you must have done your homework and be confident that the price will decline.

By making it easier for lenders and borrowers to connect, marketplaces like CoinUnited.io are helping them take advantage of the exploding demand for cryptocurrency shorting. Trading cryptocurrency short is growing easier as there are more tools available.

Depending on how much they stand to earn or the type of study they've done, traders have varying motivations for shorting a cryptocurrency.

A particular cryptocurrency may occasionally be overpriced at a given time or be in the midst of a price bubble. It's possible that this is a result of project announcements, or it might be a result of specific stories people have made up about the cryptocurrency a currency market. In order to benefit, traders may seize upon this trend and short this overvalued cryptocurrency. They thus short this inflated cryptocurrency and wait for its correction to start. Use a fundamental trading approach to examine the inherent worth of a cryptocurrency or its current market price while shorting it according to valuation measures. This will help you choose when to repurchase the borrowed cryptocurrency.

Risk-averse investors may be concerned about cryptocurrency's volatility, but traders may use it as leverage to earn money. It is clear from history that the price of crypto currency may increase as rapidly as it can decrease.

Therefore, you may benefit from the cryptocurrency's volatility if you are educated about evolving trends and are an expert in the area. Traders will often consider shorting a cryptocurrency if its price rises significantly over a period of time.

While cryptocurrency volatility may make it easier to sell short, it has a detrimental impact on long holdings. If you currently own Bitcoin and think its price will shortly decline, you can opt to short it in order to "protect" the long position you've already started.

If your projections are true, the profit you get by shorting cryptocurrency may wind up covering or even outpacing the loss on your long position. Putting in place a hedging plan, in other words, reduces your losses during a bear market.

Shorting cryptocurrency is undoubtedly a method to make some extra money when the market is down or to hedge your portfolio, but you also need to take into account the hazards associated with the strategy.

You only run the risk of having a cryptocurrency that doesn't appreciate to the level you expected when you acquire and hold it with the intention of selling it for a greater price in the future.

You still have your cryptocurrency at the end of the day, and you may keep holding it for as long as you choose. On the other side, because they exceed your initial investment, your potential losses are limited when shorting a cryptocurrency. If the value of the currency keeps increasing, you could need to borrow it at a higher rate to reduce your average cost if you want to cover without suffering losses. However, when you short a crypto currency, your potential losses are limited as long as the price of the crypto currency remains rising. A trader will need to keep shorting the cryptocurrency even if its price rises in order to make up for the losses suffered while doing so.

Remember that you don't truly possess cryptocurrency when you short sell it. Instead, you're borrowing coin from a broker, who will charge you interest as long as you hold the coins. Let's say your forecasts about the currency's price don't come true. Interest rates continue to grow, consuming a chunk of your profits, while this stasis or rise occurs. If the price of the cryptocurrency keeps rising and you choose to cut your losses, you will not only miss out on the price gain but will also incur significant losses (in the form of interest charges) for short selling.

The first step in shorting a cryptocurrency is to identify a trend before using any approach. Because of how unpredictable the market is, any number of events may swing it one way or the other. The cryptocurrency market, for instance, may be disrupted by politics, hype culture, and the influence of well-known individuals, such as Twitter key opinion leaders (KOLs). Make careful to research patterns, such as unexpected interest on the part of a high-end corporation or billionaire, if you want to learn how to short sell a crypto currency. The next step is to open a margin trading account. The majority of cryptocurrency brokers provide short selling options. To make sure you're not flouting any laws, you should also review your nation's legislation.

Let's talk about several strategies for shorting the cryptocurrency of your choosing.

This is the initial technique that the majority of people encounter when learning how to short cryptocurrency. To put it simply, you borrow cryptocurrency from an exchange at a certain price, then you sell it. After then, you wait for it to decrease in price. When it does, you repurchase the cryptocurrency and give the exchange the cryptocurrency you had borrowed. You profit the difference between the two prices in this method.

Some cryptocurrencies, like all other assets, have futures markets where you may enter into a contract to acquire a security. You wager on the price of a security to increase when you purchase a futures contract. If you sell a futures contract, it means you anticipate a bear market when prices will fall. With CoinUnited.io Derivatives, you may short Bitcoin futures contracts.

These are among the most often used methods for shorting cryptocurrency. Without really owning the asset, you can wager on its price falling or rising through the use of a contract for difference.

To ensure that you can purchase the cryptocurrency at the specific price you're betting on, you just need to deposit a portion of the margin account's fund. The exchange or broker just maintains the deposit as collateral; it stays in your ownership. So, to open your position, you simply need to provide a set percentage of the whole transaction amount. As a result, if the value of the cryptocurrency advances in the direction you predicted, you can increase your return on investment (ROI). However, if the price of the currency goes in the opposite direction to your prediction, this strategy obviously entails great dangers. Your position may be liquidated if the price rises too high because you are only providing a portion of the trade value in collateral.

You may short a cryptocurrency with cryptocurrency put options without jeopardizing your money. Purchasing cryptocurrency put options might be added to your list of strategies for shorting cryptocurrencies if you're competent dealing with complicated derivatives in a bear market. The right to sell a cryptocurrency at a certain price on a specified date is provided to the buyer via a put option. It should be remembered, however, that this is only a privilege and not an obligation. Users can choose whether to utilize the put option at their discretion.

For instance, you may spend $20,000 to purchase a three-month Bitcoin put if you believe the price would decline in the summer of 2023. Your put will result in a trading profit if the price of Bitcoin drops below this strike price on the set date. On the other hand, if the price stays high, you will only lose the option premium—the cost you incurred for holding the option—and nothing else.

Consider prediction markets if you want to communicate with other investors while learning how to short a cryptocurrency or other currency. You can forecast as an investor the decline of a particular cryptocurrency by a given percentage or margin. After then, someone else needs to accept your wager. You benefit if the price truly does move in that direction.

You need to be sure you're approaching cryptocurrency shorting correctly because it depends on a number of different elements. Since you won't want to short sell cryptocurrency during a fake retracement and wind up losing money, this is the absolute last thing you want to do.

Technical analysis is the process of using actual data to forecast how the cryptocurrency market will behave in the future. To do this, you must examine the performance of the currency you're interested in in the past, including its movement and volume.

For instance, if you wanted to know how to short Bitcoin, you would compare the current trading volume of Bitcoin to the previous several months. Additionally, the foundation of technical analysis is the notion that any movement in the cryptocurrency market is not purely random but rather is based on a trend, whether it be short- or long-term.

Here are several indicators used in technical analysis to assist with price drop or retracement prediction: With the help of these indicators, you may utilize trends to assess the likelihood that an investment will be profitable. Additionally, you may make use of statistical techniques like moving averages (MAs), time-weighted average prices (TWAP), volume-weighted average prices (VWAP), and Fibonacci ratios and extensions. You must comprehend moving averages while learning how to short Bitcoin or any other altcoin. Moving average, put simply, is the price of a cryptocurrency over a specific time period. The moving average typically depends on the coin's trading price over the previous 20 days. You may link all of your moving averages to improve the accuracy of your forecasts. These are all intricate statistical ideas, though, and they all require some understanding. You might be reluctant to go into complex economics if you're a beginner who is still learning how to short Bitcoin and other currencies.

In fact, we stated "the news" rather than merely "cryptocurrency news" since political and economic developments may move a market in any direction.

You may profit from the scenario by shorting cryptocurrency if you have a sneaking suspicion that something similar is likely to occur. However, be careful not to violate any laws or regulations as you go along because doing so might land you in serious trouble.

One of the ideal moments to short any cryptocurrency is right now. Due to the fear of missing out (FOMO), assets are overbought during these rallies. You have a chance to benefit when the buzz around a cryptocurrency fades and it either decreases or returns to its original worth.

Since cryptocurrencies have such a short history, some experts might not think the crypto market has any "fundamentals" at all. To improve your chances of making smart investing selections, you may still apply fundamental analysis (FA). Discover the factors that influence the supply and demand of the cryptocurrency you are interested in during this process. The market sentiment, news, trading, adoption, and transaction activity are a few instances of pertinent elements.

With fundamental analysis, you research a cryptocurrency's intrinsic worth. Three different measures are frequently employed in cryptocurrency since its fundamental analysis is different from that of traditional markets.

Since other websites have already created this data, you don't need to do anything in FA. For instance, when trading Spot on CoinUnited.io, you may view data charts for several cryptocurrencies.

Use this statistic with care, though. There is no certainty, for example, that a high transaction count is the result of distinct active addresses or that the same individuals are transferring cash across their several wallets, a practice known as wash trading.

The number of transactions, for instance, would be 10 if ten users transferred Bitcoin in one day. The daily transaction value would be $400,000 if each Bitcoin were worth $40,000. This information provides a broad picture of the level of interest that users are showing in a particular cryptocurrency as they carry out transactions utilizing it.

Knowing what cryptocurrency shorting is all about now, it's time to figure out where to conduct it. For the most liquidity, search for cryptocurrency exchanges that provide high trading volumes. To start shorting cryptocurrency on CoinUnited.io, look for the BTC/USD trading pair interface and choose either Isolated Margin or Cross Margin. To transfer your collateral to the exchange, click Transfer next.

Next, set up an auto-repay order and begin automatic borrowing. The sum you borrowed from the exchange will be immediately reimbursed if the price falls. If it swings the other way, though, you'll have to manually reimburse the money.

In a word, shorting a cryptocurrency involves selling it at a higher price than it would otherwise be valued because you anticipate that price falling as a result of market trepidation or retracing following a price increase. With the help of our helpful tutorial, maybe you now understand what crypto shorting is all about and where it is permitted.

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