Going Short in Crypto: Betting on Price Declines

Short is a trading technique in which a trader borrows an asset to sell it, expecting its price to continue to decline.

What is short?

A method of trading in which a trader borrows an asset to sell it with the expectation that its price will continue to decline.

In the event that the price does go down, the seller of the short will then buy the asset at that lower price to return it to the lender of the asset, making a profit on the difference.

Related terms

Spot Trading in Cryptocurrency: Immediate Settlement

Transaction or agreement to buy or sell cryptocurrency for the purpose of immediate settlement, or payment and delivery of cryptocurrency in the market.

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Equity in Crypto Ventures: Sharing the Ownership Pie

Money that will be returned to the shareholders of the company if all assets of the company are liquidated and all debts are paid off in the event of liquidation.

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Cash vs Crypto: Understanding the Differences

The most liquid form of money: physical coins and banknotes.

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Phishing in Cryptocurrency: Guarding Against Digital Bait

Hacking attack where a scammer poses as a trusted institution or person in order to trick people into revealing private information.

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Airdrops in Crypto: Free Coins for You

Marketing strategy that aims to distribute a particular cryptocurrency or token to an audience.

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Closing a Trade in Crypto Markets

Сlosing price - one of the main data points used to track the performance of an asset.

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Decentralized Exchanges: A Revolution in Crypto Trading

Peer-to-peer exchange that allows users to trade cryptocurrencies without the need for an intermediary.

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Crypto Investment Baskets: Diversification Made Easy

Сollection of digital currencies, managed as a single asset, used in the cryptocurrency space.

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The FOMO Effect in Crypto Trading

Acronym that stands for "Fear Of Missing Out".

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Trust in Blockchain: Building Confidence in the Digital World

Relationship in which one party, known as the settlor, grants another party, the trustee, the right to hold property or assets for the benefit of a third party.

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