Topic: Never short Bitcoin! (Read 296 times)
forget about shorting, it's risky and dangerous, just like going long. If you want to minimize your risk put stop-loss orders, what this done is: it liquidates your position when a certain price is reached, so you don't worry about the price crashing and losing the entire value of your position. With shorting you are risking to loose money (especially if you trade with leverage) if the market goes the other way. With the stop-loss you make sure to cash in on some already made profit, and don't need to be worried that the price will fall more to bring your account balance to close zero
Yes i agree with it, when i used to trade on forex markets, there was a guy who was always advising me to create a Short possition on bitcoin, and he was crazy because he told me that the price was going to go below $1200 after the first fork on August, and the price did just the opposite than it.
And he was one of the most professional traders in that website, because he knew a lot, but i did never understand why he didnt had any faith on bitcoin.
And he was one of the most professional traders in that website, because he knew a lot, but i did never understand why he didnt had any faith on bitcoin.
Shorting Bitcoin appears to be trickier / riskier than traditional assets for two reasons: 1) Volatility and 2) Growth. The latter being a consequence of the first, or the first being a reflection of the latter, depending on your point of view.
Both leads to a prospect shorter getting hit by a margin call more often than not, as even a dropping Bitcoin may see some short term growth before the next big plunge.
Both leads to a prospect shorter getting hit by a margin call more often than not, as even a dropping Bitcoin may see some short term growth before the next big plunge.
If you can manually analyse history of cryptocurrency, you will the highest price of bitcoin in december 2016 was only $900.
Just imagine how quickly bitcoin price rose and is still climbing to top.
How would have been those people profitted themselves?
Just imagine how quickly bitcoin price rose and is still climbing to top.
How would have been those people profitted themselves?
Quite simply people are saying it because the price trend is definitely very much upwards over the previous years, but people said to those that were smart enough to short the housing market in 2007 that they shouldn't and they did and they're now very rich. Blanket assumptions are never correct.
every one keeps saying that but no one told me why exactly lol. I know that it's kinda obvious because bitcoin's momentum seems to only go up but is there more complicated explanation ??
Who is saying that?By "everyone" you mean your friends,colleagues or forum members on bitcointalk?
Nobbody is telling me not to short bitcoins,but anyway i`m not using this feature on my exchange platform accounts that i use.I don`t want other people`s advices about how to trade and what to do with my cryptocurrencies.
every one keeps saying that but no one told me why exactly lol. I know that it's kinda obvious because bitcoin's momentum seems to only go up but is there more complicated explanation ??
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