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?
Which is the meaning of "shorting" in crypto?
- Thread starter Fidelia
- Start date
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
Team Lead
Staff member
Earnings Enforcer
Gold Supporter
Literary Virtuoso
Registered Member
As Suba says, it is something like betting that the price of an asset is going to fall in a certain period of time.
