If cryptocurrency is the first you trade, you may not know how to short sell assets or you do not have access to the appropriate tools. Moreover, you probably do not like players for a fall. When prices fall, the bears look unpleasantly happy amid the General gloom. Tell why we all need to know about the shortening and be able to do it.
Reason 1: This is the fastest way to profit
In the stock market there’s an old saying: the market climbs the stairs but down the Elevator. This means that markets are growing more slowly than falling.
Let’s look at the schedule: every it happened that the whole week the market is moving up, and all these achievements disappear in 1-2 days, and in this case we see the fruits of an eight-day growth burn for 3 days. On short positions you can earn much more — because fear is stronger than hope.
Reason 2: Shortening protecting your profit
If the only tool available — a long position, i.e. buying and holding asset in the hope that it will rise in price, trading becomes not too attractive. It’s like playing hockey on one skate without pucks. If you are not able to short, you lose much of the power.
The only reason not to engage in short — term investments. If you are trying to trade cryptocurrency, and not shortite is anything but trade. Shortening is an opportunity to make money on the fall and rise, and, looking at the movements of the market with both positions, we avoid bias. If you are shortite, if you go to the shore.
Reason 3: The Impartiality
If you are trading on the Forex market or buy and sell futures, you have no problems with shortening — it is done as easily as a long position. As mentioned in the second paragraph, trading is the search of opportunities of both types. If you can only rely on the growth of the asset, you will inevitably face disappointment, when it falls and you avoid that course. But the bias is very dangerous for a trader and have no preference useful.
Reason 4: Shortening ensures fairness
Shortening is very important for the market as it provides honesty. When the stock market, futures contract, currency or cryptocurrency be a “victim of short-attack”, it simply means that the asset is weak, and that he did not believe traders and investors. Yes, what “attack” is quite a good classic sales, it’s the same thing. It shorteri establish the real price of assets and help investors and the bulls not to succumb to self-deception.
Shortening is simply the question of whether the coin is worth so much, and to prove the real value of the asset has buyers and bulls. Shortening is necessary to ensure honesty and integrity in the market.