How to Short Sell Bitcoin?

The desire to have a long-term, reliable, and high-value asset is one of the reasons why people have started to make money online with Bitcoin. Moreover, since Bitcoin has a limited supply, international organizations or governments can't change its value or dilute it through inflation, which normally affects all other currencies. In addition, governments can't tax Bitcoin and other cryptocurrencies directly until the owner decides to go corporate. However, many people believe that Bitcoin is unstable and can crash at any time. For such people, short-selling Bitcoin is the best option.

Here are some ways through which you can easily short sell Bitcoin.

Margin Trading

The easiest way to short sell Bitcoin is through margin trading platforms. In margin trading, Bitcoin investors borrow money from brokers to make a successful cryptocurrency trade. Therefore, the borrowed margin money can result in profit and loss, depending on the future Bitcoin price. Popular margin trading platforms include Binance and Kraken.

Prediction Markets

The second option to short sell Bitcoin is through prediction markets. The prediction markets of cryptocurrency work just like regular prediction markets. In Bitcoin prediction markets, investors hold events to make bets and predictions. In these events, a Bitcoin seller can predict that the price of Bitcoin will decrease by a certain margin in the future. If anyone disagrees with the statement, they can bet on your Bitcoins. If your statement stands true, you'll make a profit on your Bitcoins. Some popular Bitcoin prediction markets include Polymarket and Augur.

Bitcoin CFDs

If you have a finance or accounting background, you would understand CFD already, but it's a hard concept for people new to cryptocurrency or finance. But, let us explain. A CFD is a financial strategy that pays an amount considering the difference between a Bitcoin settlement's opening and closing prices.

Bitcoin CFDs have some similarities to Bitcoin prediction markets, as both of them place bets on the decline of the cryptocurrency, also called shorting Bitcoin. Unlike other forms of Bitcoin betting, Bitcoin CFD is more flexible. Moreover, they also don't require you to submit Bitcoins as custody charges.

However, before you short-sell Bitcoin, we recommend getting a complete guide to cryptocurrency basics. For this purpose, you can read simple crypto news and market guides at Urban Crypto. We provide the right guidance on cryptocurrency for beginners, so you can make the maximum profit when short-selling Bitcoins. Head over to our website for more crypto and Bitcoin updates.

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