Which is the meaning of "shorting" in crypto?

[Fidelia]

I often hear the word "shorting" in crypto circles? What does it mean? Is it related to trading? At what point does it need to be applied? What are the potential benefits of "shorting"? Any risks with it?

 

[Suba]

The term shorting comes from the stock market and has the same meaning in the trading world, where I borrow crypto/Bitcoin with the prediction that the price will soon drop, for example I borrow ! BTC at a price of $ 94k, and immediately sell it on the market, if I predict the price of Btc correctly that the price of BTC will soon drop to $ 84k, then I will buy 1 BTC and pay the interest on the loan then I will profit $ 10k minus the interest fee.

 

[riberet19]

As Suba says, it is something like betting that the price of an asset is going to fall in a certain period of time.

 

[kit_hung]

Shorting is a trading strategy where someone invests in the hope that the price of a currency will fall . You borrow a token, sell it, and then buy it back at a lower price to make a profit.

It can be very profitable but it is also risky. If the price goes up instead of down, you can lose a lot . It's good to learn before you try.