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Author: Admin | 2025-04-28
Indicators to KnowThe Golden Cross and Death Cross in Crypto TradingHow to Read Crypto Charts — A Beginner’s GuideHow to Read Candlesticks on a Crypto Chart: A Beginner’s GuideGrid Trading: What It Is and Tips for Getting StartedAfter identifying a Bitcoin shorting opportunity and opening a trading position, it is important to monitor the position and consider adopting risk management strategies like setting stop-loss and take-profit levels. Ultimately, the Bitcoin price may increase instead of the expected decline, leading to potential losses. Additionally, since many shorting methods involve margin and, therefore, leverage, losses can be potentially magnified.Steps to Short BitcoinShorting Bitcoin can be done in various ways on trading platforms like the Crypto.com Exchange. These include margin trading and derivatives, where available.Margin TradingMargin trading involves using borrowed funds to pay for a trade. It allows the trader to open a Bitcoin position by using collateral, but without having to pay the full amount from their pocket. Margin trading can also be used to generate leverage in a position, which can potentially magnify gains and losses.Learn more about margin trading and leverage in Crypto Spot Trading vs Margin Trading: What Is the Difference?To short Bitcoin via margin trading on the Crypto.com Exchange, for example, involves the following steps:Sign up for the Crypto.com Exchange.Open a margin trading account, if eligible.Conduct thorough research on the market and Bitcoin.Place a short sell order for Bitcoin.Set stop-loss and take-profit levels.Monitor the trade and manage risk.Derivatives TradingA commonly used type of derivative to short Bitcoin is the futures contract, which is an agreement between a buyer and seller to buy (also called ‘long’) and/or sell (also called ‘short’) Bitcoin at a set future date (expiry date) for a set price. A short futures position profits when Bitcoin’s price falls, while a long futures position profits when the price rises. Trading futures also typically can involve the use of margin.Shorting with futures on the Crypto.com Exchange, for example, involves similar steps to margin trading shown above.Options are another type of derivative that provides exposure to Bitcoin’s price movement. Buying a put option profits when Bitcoin’s price falls:Learn
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