by Rohit 

November 30, 2020

Short in trading terms means you are bearish on that coin and expect the prices to go down in near future.

When you go short on any coin, you sell that coin to buy it later at a lower price. This is usually done in the derivatives segment of cryptocurrency trading.

This means, if you expect the prices of Bitcoin to go down from current levels, you sell BTCUSDT trading pair in future segment of the crypto exchange and then buy it later at a lower price

Like selling at $18800 and then buying at $17500.

This concept of selling now to buy later is difficult to do in spot market. There you can only sell to move out of the coin and then enter back at lower price. But you don’t monetary benefit of this price drop. That part is only possible in derivatives (futures and options) segment.

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About the author 

Rohit

A trader and investor with over 11 years in traditional stock markets. Got introduced to cryptocurrencies in 2018 and got hooked. Now spend half of the day in trading cryptocurrencies and another half in researching/reading about the whole ecosystem and cryptocurrencies in specific.

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