Topic: how to short bitcoins, 3 easy steps (Read 5476 times)
Once again the term 'shorting' gets misused by talking about simply selling your assets, instead of the real term which implies borrowing an asset you don't own from somebody else...
gentlemen, we're nitpicking here.
OP is right insofar you can profit from falling rates by selling an asset/instrument and buying back more at lower rate.
but OP is using the term "shorting" in a sloppy way.
Used more precisely, "going short" means to engage into a short position, which is constructed in a specific way (some derivative, contracts for difference, futures, options,...) and typically includes some degree of leverage.
OP is right insofar you can profit from falling rates by selling an asset/instrument and buying back more at lower rate.
but OP is using the term "shorting" in a sloppy way.
Used more precisely, "going short" means to engage into a short position, which is constructed in a specific way (some derivative, contracts for difference, futures, options,...) and typically includes some degree of leverage.
Sounds like financial masturbation.
the only TRUE way to short bitcoins would be to issue guarantees or contracts (options contracts) stating you will pay a certain number bitcoins and interest. bitcoins fall below contract price, you scoop em up on the cheap and you have made a profit shorting.....
Why is that a problem?
Look, here is how the math works out.
You pay $95 each for 10 bitcoin, 950 total
You sell your 10 bitcoin, gain 950 dollars.
When finished with your short, you buy those 10 bitcoin back. If you were a smart bear, you can buy the 10 bitcoin for less than $950, and see a net gain.
Or if you were a smart bull, you could buy more than those 10 bitcoin back
Why is that a problem?
Look, here is how the math works out.
You pay $95 each for 10 bitcoin, 950 total
You sell your 10 bitcoin, gain 950 dollars.
When finished with your short, you buy those 10 bitcoin back. If you were a smart bear, you can buy the 10 bitcoin for less than $950, and see a net gain.
I don't know why people think it's so hard or think you need some special trading platform to do it.
Step 1: buy bitcoins at price A, as an early adopter
Step 2: lend bitcoins to yourself, and sell at price B
Step 3: buy back those bitcoins lent to yourself, preferably at a lower price than B
If you didn't already buy bitcoin as an early adopter, buy coins now, and then wait 2-3 years before moving on to step 2, as I am certain current coin prices will feel like early adopter prices by then.
Step 1: buy bitcoins at price A, as an early adopter
Step 2: lend bitcoins to yourself, and sell at price B
Step 3: buy back those bitcoins lent to yourself, preferably at a lower price than B
If you didn't already buy bitcoin as an early adopter, buy coins now, and then wait 2-3 years before moving on to step 2, as I am certain current coin prices will feel like early adopter prices by then.
Honestly this is how I've been playing the market since Wednesday.
-Sell Coins
-Buy back Lower (hopefully)
-If it goes up pick a "stop loss" and buy back in again at that price.
-think of it like shorting.
LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD.
you fail.
you fail.
I have no idea what you are even talking about. I am describing a way to short bitcoin, that doesn't require bitfinex or any other service. It also has 0 interest
No you are trolling.
LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD.
you fail.
you fail.
I have no idea what you are even talking about. I am describing a way to short bitcoin, that doesn't require bitfinex or any other service. It also has 0 interest
LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD.
you fail.
you fail.
ehh, maybe not... as an economics student that chart looks real bubbly 
I don't know why people think it's so hard or think you need some special trading platform to do it.
Step 1: buy bitcoins at price A, as an early adopter
Step 2: lend bitcoins to yourself, and sell at price B
Step 3: buy back those bitcoins lent to yourself, preferably at a lower price than B
If you didn't already buy bitcoin as an early adopter, buy coins now, and then wait 2-3 years before moving on to step 2, as I am certain current coin prices will feel like early adopter prices by then.
Step 1: buy bitcoins at price A, as an early adopter
Step 2: lend bitcoins to yourself, and sell at price B
Step 3: buy back those bitcoins lent to yourself, preferably at a lower price than B
If you didn't already buy bitcoin as an early adopter, buy coins now, and then wait 2-3 years before moving on to step 2, as I am certain current coin prices will feel like early adopter prices by then.
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