With bitcoin suffering a correction of more than 20% today, the biggest daily drop since the March crash, Bitcoin pessimists have once again chanted the defeat of the cryptocurrency. However, there is a way to make money from the fall of Bitcoin.
As the market matured, bitcoin soon gained ground in the derivatives sector and today it is possible to make BTC short. The option is extremely risky, considering the strong bullish movements for which crypto is very well known, but the corrections are also represent opportunities for those who believe in the bearish.
Contrary to ‘long’, which means betting on an asset high, ‘short’ is just trying to make money from the low. Trading requires someone to lend bitcoins, and some exchanges like Deribit, Bitmex and Bitfinex offer this possibility. When borrowing the assets that the trader believes in devaluation, he sells and seeks to repurchase at a lower price, then return the assets and keep the difference.
See in a few steps how the operation of profiting from the fall works.
Borrow the assetsSale at market priceBuy when the price dropsPay the interest on the loanAn extremely risky operation, especially when we are talking about probably the most revolutionary asset in recent years, Bitcoin. Cryptocurrency continues to prove itself over time, but continues to accumulate critics. Will they be brave enough to actually bet on the low?
See also: Samy Dana gives up bet on Bitcoin price
Invest in cryptocurrencies with security, high liquidity and the lowest rates in the market.
NovaDAX: the most complete exchange in Brazil with over 25 listed cryptocurrencies and the best customer service score.