4 reasons to learn how to short cryptocurrencies

If you did not trade anything before cryptocurrency, you may not know how to short the assets - or you do not have access to the appropriate tools. Moreover, you probably do not like players for a fall. When prices fall, the bears (who love shorts) look unpleasantly happy against the backdrop of general gloom. We tell why everyone needs to know about shortening and to be able to do it.

1. This is the fastest way to make a profit.

There is such an old saying: the market goes upstairs and goes down the elevator. This means that markets grow more slowly than they fall. Let's look at the chart: Everyone has happened that the market is gradually moving upwards throughout the week, and all these achievements disappear in the 1 − 2 of the day, and in this case we see the fruits of the eight-day growth burn in the 3 of the day. You can earn much more in a short position - because fear is stronger than hope.

2. Shorting protects profits

If the only available tool is a long position, that is, buying and holding an asset in the hope that it will go up in value, trading becomes not very attractive. It's like playing hockey on one skate and without a stick.

If you do not know how to short, you lose a significant part of the possibilities. The only reason not to engage in shorting is a long-term investment. If you are trying to trade cryptocurrencies, and at the same time do not short, this is anything, but not trade. Shorting is an opportunity to make money both in a fall and in growth, and, looking at market movements from both positions, we avoid bias. If you are not short, you seem to walk in the blinders.

3. Shorting guarantees impartiality

If you are trading in the forex market or selling and buying futures, you do not have problems with shortening - there it is done as easily as a long position. As it was said in the second paragraph, trading is a search for opportunities of both types. If you can only hope for the growth of an asset, you will inevitably encounter disappointment when it falls, and you will avoid it, which is natural. But bias is very dangerous for a trader, and not having preferences is useful.

4. Shorting is honest

Shorting is very important for the market because it ensures integrity. When a stock market, a futures contract, a currency or a cryptocurrency turn out to be a “victim of a short attack”, it simply means that the asset is weak, that traders and investors do not believe in it. Yes, what kind of "attack" is a fairly good classic sale, because it is the same. It is the shorts that set the real price of assets and help investors and bulls not to succumb to self-deception.

Shorting is simply a question of whether a coin really costs so much, and buyers and bulls have to prove the real value of an asset.

Shorting is one of the parties to the market consensus on the value of an asset. Without this, the market would not be fair.

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