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RE: The Basics of Short Selling a Stock by ScaredyCatGuide
So if I get it right: shorting is like making profit out of the value of a coin going down? So if I think that for example ethereum will go down, I borrow a ether token from someone on an exchange and I do sell it for it's current value, let us say 300 USD. Then I wait for the price to go down, and I buy it back for 200USD and I gave back the 1 ether to the person who I borrowed it from and so I made 100 USD? Am I right with this short example?
Yeah, that is the basics of it and short selling can certainly apply to crypto as well. I am yet to personally short any crypto coins (just doing equity markets now), but I know its available as an option I have seen others do it.
Thank you for sharing this information! It looks like a risky thing to do, for sure with cryptocurrency, you never know when a coin is skyrocketing to the moon, it could become an expensive thing to buy it back to give it back... But with high risks you can get high profits to, nothing comes from nothing (as we say it in Dutch!)... Good luck with your investments!