BSHORT Token a Safe Way to Short Bitcoin

The vast majority of people who are interested in cryptocurrencies know only about one way to make money in this market: buy cheaper – sell more expensive. Of course, this is the most proven and common method, but it works exclusively with a growing trend, but alas, the asset cannot grow constantly physically. So what to do when bears dominate the market?

There is a way that involves making money in a falling market – these are short sales or bets against BTC. The “play for a fall” is still not very common at this point in time, so now there is just a great opportunity to use the best tools for BTC shorts.

The movie “Big Short” was dedicated to this method of earning. The main role was played by Christian Bale, whose character earned hundreds of millions of dollars just by opening short positions before the financial crisis in 2008. But what are short positions? And how does this term apply to cryptocurrency trading?

How to short?

There are two main tools that allow playing against Bitcoin:

  • Futures – contracts that indicate the price and date of sale of an asset in advance.
  • Leverage trading involves borrowing money from the exchange/broker, using own deposit as security for repayment of debt obligations.

If shorting is so easy, why are most people afraid to do this?

The thing is that the above tools are quite complex and very risky. If a person opens a short position using one of the above tools, and the price of the asset, on the contrary, increases, the trader will lose a substantial part of his deposit. In the case of futures, you are bound to a predetermined rate and date, and therefore if your contract says that you should sell BTC for $11,000 in two weeks, then regardless of the current rate, you will have to do it. When trading leverage, you first need to make a deposit in BTC, and if the price goes against you, you will have to pay off the debt to the exchange.

Greet BSHORT: BTC Shorts Token

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