Short Selling
Betting that a cryptocurrency's price will decline by borrowing and selling it, then buying it back cheaper.
Explained Simply
Short selling (shorting) profits from falling prices. In crypto, shorting is typically done through perpetual futures — you open a short position that gains value as the price drops. The risk is theoretically unlimited — if the price rises instead, your losses grow. With leverage, losses are amplified and you can be liquidated. Shorting is an advanced strategy used by traders to hedge positions or profit from overvalued assets. Most retail traders lose money shorting due to crypto's long-term upward tendency.
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