Oct 20, · Statistics show that bitcoin options open interest stands at more than $ billion on Tuesday (Oct. 20), as the trading platform Deribit dominates most of the bitcoin options action. Deribit. Jan 16, · Shorting Bitcoin is the process of selling the cryptocurrency with the hope that when its value will fall, you can buy it back at the lower price. By doing this, traders earn the profit of Author: Peter Jack. Some of the options for shorting Bitcoin in crypto trading are known as ‘naked shorts’ – meaning you don’t have to own the asset before you sell or short it. However, for most crypto derivatives exchanges, you will need to deposit some Bitcoin to the platform before you can open a short.
Bitcoin shorting platformHow to Short Bitcoin | Top 3 Sites To Short Selling Bitcoin in (Dec. )
Guide to Bitcoin. How Bitcoin Works. Investing in Bitcoin. How to Mine Bitcoin. Other Cryptocurrencies. Full Bio Follow Linkedin. Follow Twitter. Brian T. Edmondson was the online business expert for The Balance Small Business. He also covered topics on bitcoin and cryptocurrency for The Balance.
Read The Balance's editorial policies. Reviewed by. Khadija Khartit is a strategy, investment and funding expert, and an educator of fintech and strategic finance in top universities. Ethereum 2. How to Short Bitcoin. Steven Buchko. Should I short Bitcoins? How to manage risks for shorting Bitcoin? Is shorting bitcoin advisable for beginners? Bitcoin Investments. Newsletter Sidebar. This field is for validation purposes and should be left unchanged. December 11, Adam Stieb.
Bitcoin futures can be purchased or traded on popular exchanges like Kraken or BitMex and can also be found at popular brokerages such as eToro and TD Ameritrade. Call and put options also allow people to short bitcoin. If you wish to short the currency, you'd execute a put order, probably with an escrow service.
This means that you would be aiming to be able to sell the currency at today's price, even if the price drops later on. Binary options are available through a number of offshore exchanges, but the costs and risks are high. Prediction markets are another way to consider shorting bitcoin.
They have not been around in the cryptocurrency world for long, but they can nonetheless be an asset for shorting currencies like bitcoin. These markets allow investors to create an event to make a wager based on the outcome. You could, therefore, predict that bitcoin would decline by a certain margin or percentage, and if anyone takes you up on the bet, you'd stand to profit if it comes to pass. Predictious is one example of a prediction market for bitcoin. While this might not appeal to all investors, those interested in buying and selling actual bitcoin could short-sell the currency directly.
Sell off tokens at a price that you are comfortable with, wait until the price drops, and then buy tokens again. Of course, if the price does not adjust as you expect, you could also either lose money or lose bitcoin assets in the process. Your Money.