What is Bitcoin doing? .... - How to short.

in #bitcoin6 years ago (edited)

Bitcoin has started to make higher lows which could mean a short term pump, but we are still waiting on SEC decision on the 30th to decide when the next true bull run begins.

Now for those of you who don't know this, you can actually make money in the bear market when Bitcoin price is declining and you can do so without leverage. The way to achieve this is by using the "Stable Coins" to short Bitcoin. To put this in plain English, when you think Bitcoin, or any coin for that matter is about to dip, you can sell that coin into "Stable Coin" using a "Stable Coin" trading pair such as USDT. So for example, lets say I have 1 Bitcoin that is not worth $6000, but I think Bitcoin will go down to $3000. I sell my 1 Bitcoin at $6,000 into USDT, then rebuy Bitcoin once it hits $3000, I now have 2 Bitcoins. Now when Bitcoin price goes back up to $6000 I now how $12,000. I am using round numbers to make this example easy to understand. While seasoned traders understand this, there are many who do not understand the concept of shorting. Now if you trade on sites that offer margin trading, you can do this with 10 times or more percent and really make some extra Bitcoin. Now obviously trying to double your Bitcoin on one trade is not likely, but if you can make 1% or gain 0.01 Bitcoin per trade over the course of a few months you can really make a lot of extra Bitcoin.

Remember it is always safer to HODL, but if you have the courage and are decent at reading charts this could be a great way to increase your holdings. This can be done in my opinion simply by watching the RSI. When the RSI is high, sell, when its low, rebuy. But you have to keep emotion out of it.

I am not a financial advisor and this is not financial advice, invest at your own risk.

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Hello @emmbobm701,
I really like the way you explained all the things and reason behind and I hope the bull run begins at the beginning of the new year.
Keep it up->
Thank you :-)

Thank you @Amar15, I am very excited to see what happens on the 30th!

Sorry, It was going to be repeated due to weak signal.

No worried.

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