How Do Traders Short Bitcoin?
3 Ways to gain profits on Bitcoin price falls
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Bitcoin and cryptocurrency markets were suddenly sold off on December 17-18: the world’s largest crypto lost around $400 in price and dived deeply below the important psychological mark of $7,000.
While Bitcoin is still largely up from the beginning of the year, it’s still slipping down, the community is debating when the next bullish run will come and whether it’ll happen at all.
Bitcoin holders who have strong believe in crypto might just wait for another bullish run to start and maybe even plan to buy more of BTC’s during the current sellout.
However, there are always traders who want to make profits in the short term and gain profits on falling Bitcoin prices (so-called shorting). Below we’ve covered the most popular ways to gain profits by shorting cryptos.
A futures contract is an obligation to buy or sell an asset in the future at a fixed price, no matter how actual price and contract price will differ by the expiration date of such contract.
When trading futures investors can open not only long positions but also short: in case of long, the traders agree to buy the asset at a fixed price in the future, in case of short – to sell the asset on the contract expiration date. When shorting, to get the profits traders must correctly predict price decrease and make gains on the difference between the selling price and current price.
Traditional Bitcoin futures are usually traded by big institutional investors and not so easily available for individuals.
2. Binary Options Trading
Traders also can short Bitcoin and other cryptos by trading binary options: a very risky investment tool. You need to open a put order (selling order), this means that you would be able to sell the crypto at today’s price when the price will drop later.
By trading binary options investors should only decide whether the price of the asset will rise or fall, thus this type of option is called binary. The result of such trades could bring significant profits or almost total loss of the asset. Use carefully.
3.Margin Trading (Leveraged Trading)

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Bexplus is a Hong Kong-based 100x leveraged exchange platform established in 2017. The exchange offers perpetual futures contracts on various crypto assets: Bitcoin, Ethereum, Litecoin, XRP, and EOS.

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Ashton Wolfe
From planting Bitcoin ATM's around North America to developing solutions for top-tier fintech businesses in all of the different regions around the world. Always on the hunt to find the next wave in the fintech & blockchain spaces to provide value & results across the board. Currently focusing on different developing payment businesses in Asia, digital banking and tackling different approaches in advising businesses suited to their best interest. Being the Managing Partner at...
From planting Bitcoin ATM's around North America to developing solutions for top-tier fintech businesses in all of the different regions around the world. Always on the hunt to find the next wave in the fintech & blockchain spaces to provide value & results across the board. Currently focusing on different developing payment businesses in Asia, digital banking and tackling different approaches in advising businesses suited to their best interest. Being the Managing Partner at...
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