Introduction

Digital currencies are still a nascent market, and many investors have generally not invested because of these assets’ virtual and intangible nature. In many financial markets of the world, short selling is one of the methods used to make more profit. This method can also be used in cryptocurrencies. But how can it be used?

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Short Sell Method

In the stock market, green means profitability. The greener the market, the higher the profit. But is there a way to make a profit again by lowering the price of an asset? If so, what is the procedure? This type of profit is called short selling.

What Is a Short Sell?

Short selling is one of the methods that work in reverse in the market. For example, you sell first and then buy because you do not have enough money to buy first.

Anyone can do short-selling operations in cryptocurrencies. The procedure is simple. First, by looking at the chart, you will notice that the price of a digital currency is falling. You sell it at a higher price, and when the price drops enough, you repurchase it. Simply! Of course, note that if the price rises again after the price drops, you will suffer a loss!

Position Difference at Short Sell Time

One of the main ways to make a profit in the cryptocurrency market is to buy when it is cheap and expensive to sell and make a profit. For the gain to be significant, you need to consider when to open or close a position.

Creating a long order means that you are buying crypto, considering that the price will increase after a while. Opening a bitcoin long position means that when the price of bitcoin rises against the dollar, sell it.