How to buy short bitcoin

1. What is the meaning of Bitcoin shorting

Shoring refers to selling a position. Doing more: Doing refers to a long position, and it can also be called a bullish position, also known as a long position. Buy a certain type of currency, bearish.

1. Going long means that it is estimated that the potential will rise, so buy the contract, and sell the contract at a sky-high price after the price rises in the future. Get a net profit. Going short means selling the contract after estimating that it is going to fall, and buying the contract at a low price when the price falls in the future. Get a net profit.

2. In terms of hedging: Doing more means evading or hedging away the risk of product cost expansion caused by future price increases, and locking in costs early. Shorting means escaping or hedging away the risk of profit reduction caused by future price drops, and locking in profits early.

(1) How to buy short bitcoin extended reading

Exploding, under certain special conditions, the customer’s rights and interests in the investor’s margin account case of negative values. When the market situation changes greatly, if most of the funds in the investor’s margin account are occupied by the trading margin, and the trading direction is opposite to the market trend, due to the leverage effect of margin trading, it is easy to liquidate.

If the liquidation leads to a shortfall and is caused by the investor, the investor needs to make up the shortfall, otherwise he will face legal recourse. The greater the leverage, the closer it is to liquidation, and you must be cautious when adding any leverage.

2. How to short bitcoin

If you want to short bitcoin, you need to choose a safe and reliable trading platform to open futures contracts. Ten times a hundred times leverage. If you want to go short, go to open a short order, if you want to go long, go to open a long order. However, futures contracts are very risky, so be careful.

3. How to trade bitcoin contracts

Similar to futures contracts, it is a trading method proposed by BitStar.
The leverage of the Bitcoin virtual contract is represented by the stable leverage at the level of fiat currency income: investing $100, the income you can get = $100 * Bitcoin’s rise and fall * fixed leverage multiple.
Assuming that the current price is 500USD/BTC, an investor buys one BTC at the current price, and the principal is 500USD. At this time, the investor can buy 50 BTC virtual contracts. At this time, if the BTC price rises to US$750, an increase of 50%, the investor’s contract income is 3.3333 BTC, and after selling at the current price, he can obtain US$2,500, and the income is 5 times the principal investment. If the price rises to $1,000, the contract income is 5BTC, and the dollar income after selling is $5,000, which is 10 times its dollar income. No matter how the price fluctuates, the leverage of the contract is very stable, which makes it convenient for merchants to hedge with the contract and for ordinary investors to manage their positions.

4. Can bitcoin be shorted?

Bitcoin (Bitcoin: Bit Gold) was originally a network virtual currency, which is similar to Tencent’s Q coin Similar, but can already buy real-life items. It is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Therefore, it is used by some criminals as a money laundering tool. . In 2013, the U.S. government recognized the legal status of Bitcoin, causing the price of Bitcoin to skyrocket. In China, on November 19, 2013, one bitcoin was worth 6,989 yuan.

5. Can Bitcoin be shorted?

Currently, the trading platforms that provide shorting are: 796 Exchange,; the purpose of shorting is to earn more Bitcoins, But if Bitcoin’s increments aren’t enough to make up for the price drop, it’s still not profitable overall. For example, if you hold 100 bitcoins at the price of 1,000 yuan, and earn 800 bitcoins when the price falls to 100 yuan through short selling, a total of 900 bitcoins, then the book market value before the short sale is 100,000 yuan, and the book value after the short sale is 100,000 yuan. It is 90,000 yuan, and the overall is still a loss.
2. First hold enough Bitcoin and RMB, open different accounts on the trading platform, and arbitrarily raise or lower the transaction price of Bitcoin through simultaneous operation and mutual transactions between two anonymous accounts. For example, two accounts set the same quantity and price, and press the buy and sell operations at the same second to complete the process of transferring from the left pocket to the right pocket. Of course, the volume of this sell-off must be large enough and frequent enough to cause panic selling in the market and drive the market price down. At the same time, use other accounts to open positions at high levels, and earn more bitcoins by shorting to achieve profits.
3. If you have enough energy, you can mobilize the media to continuously release negative news and news, and it can also cause panic and sell-off in the market. For example, ask some well-known economists, such as Chen Zhiwu and Lang Xianping, to post some comments sings about Bitcoin, plus the hype on Weibo, ask some big V to retweet it a lot, creating market panic, and the price will naturally fall.

Author: Anonymous User
Source: Zhihu
The copyright belongs to the author all. For commercial reprints, please contact the author for authorization, and for non-commercial reprints, please indicate the source.

6. How to short Bitcoin

Token Network Forum: If you want to short, you must have the corresponding capital. At present, as a new player, you want to Buying bitcoins in bulk is difficult. And since most people are holding coins, it is difficult to make Bitcoin circulate with each other.

Buy a lot of bitcoins, and keep buying high and selling low, if you can hold on, bitcoins may be shorted
As long as you can keep spreading the shortcomings of bitcoins, reduce the number of bitcoins Coin holders can basically affect the operation of the exchange. If Bitcoin cannot be circulated and traded, there is basically only some learning.

The principle of shorting bitcoin:

This shorting is to convert your money into more bitcoins, but to make money, you need to get more bitcoins After that, you can only make money when Bitcoin goes up. Like China’s stock market, it makes sense to increase positions when they fall. But what I want to tell you is that this shorting is actually not profitable.

The principle of short-selling in the spot market is different from that of the spot market. Short-selling in the spot market and other markets can make money when it falls, and the position in hand remains unchanged. But what Bitcoin changes is your position. In the same way, the more the Chinese stock market falls, the more positions will be added, the cost of opening positions will be evenly distributed and then wait for the increase.

After understanding the principle of Bitcoin shorting, the answer is obtained: In short, this shorting is actually false.

7. Bitcoin can be shorted

  1. Bitcoin can only be long.

  2. Shoring is an investment term for stocks, futures, etc., and a mode of operation in markets such as stocks and futures. It is the opposite of “going long”. In theory, it is to borrow and sell first, and then buy and return.

  3. Shoring refers to anticipating that the market will fall in the future, sell the stock at the current price, and buy it after the market falls to obtain a profit from the price difference.

  4. The trading behavior is characterized by selling first and then buying. It’s actually a bit like the credit transaction model in business. This model can be profitable in the wave of falling prices, that is, borrow goods at a high level and sell them, and then buy and return them after the price falls. For example, if a stock is expected to fall in the future, borrow the stock when the current price is high (the actual transaction is to buy a bearish contract) and sell it, and then buy it when the stock price falls to a certain level, and return it to the seller at the current price. The difference is profit.

8. How to calculate the liquidation price when shorting Bitcoin

It depends on how much leverage you have, such as 10 times Leverage, the bitcoin price is 2500 yuan, then it is (2500/10)*0.75=187.5 yuan. When the price changes by 0.75 times, it will reverse the transaction and automatically close the position, and then you will be out of stock.


Related Ad

Comments (No)

Leave a Reply