A Full Guide ▷ How To Short Cryptocurrencies Cryptocurrency Trading | Short-selling Cryptocurrency at CAPEX

The longing position of cryptocurrencies is the process of buying cryptos like Ethereum, etc., and holding it with the expectation of a rise in price in the future. While going long, one thing to keep in mind is that to get any significant return on the digital assets invested might take months or years.

What is the opposite?

Shorting cryptocurrency is the process of selling cryptos when the market value is relatively high and then repurchasing it at a lower rate, thereby making a profit. This shorting position includes certain trading policies such as binary options, futures trading, etc. Using these techniques, traders usually make a profit even from tiny price shifts.

When you long cryptocurrencies, you essentially bet that the price will increase. If it does, you’ll profit. It is a more direct approach to investments in cryptocurrencies. The long position on cryptos is to ‘buy at low and sell at high’ strategy. Whether to go long or short on a cryptocurrency, an account with any cryptocurrency is first required.

Sounds simple right? Not so fast, Cryptocurrency prices can very well drop after you long it. A dip will force you to either sell at a loss or hope that it will recover. With CAPEX, you don’t need a crypto wallet! You don’t have to worry about safeguarding your assets. Users can concentrate on trading; CFDs work on price assumptions and don’t require ownership of the particular asset.

Methods of longing cryptocurrencies

Long term trading techniques focus on investing in large-time frames. The two important long-term trading strategies are:

• Technical Analysis
• Fundamental Analysis

Shorting cryptocurrencies is considered to be a bit complex as compared to longing. This strategy includes the plan of not buying but borrowing coins when the asset value is low. You need to follow technical trading strategies to short sell cryptocurrencies. A Short position on trading is played with high capital.

Say, Bitcoin price is set at $15,000 market value per coin. This borrowed amount can be paid back when the market value is lower, e.g. $10,000, resulting in a $5,000 profit per coin. One of the easiest ways to short sell cryptocurrencies is through CFDs like in CAPEX, the best online broker for cryptocurrencies.

Methods of shorting cryptocurrencies

The four basic cryptocurrency trading strategies are:

• Margin trading: Margin Trading includes borrowing any virtual coins from the broker and trading them later. So, it is borrowing and selling cryptocurrencies at a high market price and repaying the broker at a lower market value. Of course, things may go otherwise, and traders may suffer huge losses.
• Future trading: Future contracts make traders buy cryptocurrencies at a fixed rate on a particular date. In this trading, traders speculate the value of an asset at a specific period in the future. At that point, they can sell the contract and make a profit out of it. However, this whole process is intuitive, and things may go in the opposite direction. Also, future crypto trading is not as popular as CFDs.
• Direct short selling: This is a direct way of buying short and selling high. In the case of DSS, no borrowing of assets or signing any contract is done. The trader buys Cryptocurrency at a standard rate and sells them when the market value seems inflated. They invest that profit by buying coins when they are undervalued, increasing their investment through those market variations.
• CFDs: Contracts for Difference are considered to be the mainstream way of investing in any cryptocurrency. In CFD platforms like CAPEX, you can profit by betting on the prices/values of any particular crypto to either incline or go low. In the case of CFDs, no borrowing, buying or selling of assets is done. The trader signs the contract, bets and allows the market to decide the rest.

Trading with CAPEX.com

The great thing about CFD trading online is that you can do it anywhere there is a secure internet connection. Inevitably, this means that mobile trading has proven particularly popular as traders can conveniently open and close positions from their mobile or tablet as and when it suits them.

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After learning how to short cryptocurrencies, the question arises – how to start the trading journey?

Whether to go long or short on crypto trading, the first step you may take is to register with a crypto exchange platform. You might also require registration with a wallet to store the Cryptocurrency. However, using the approach of CFDs eliminates these and makes the whole process much easier.

We are one of the best CFD exchanges globally, with a straightforward signup process. The first step is to register on the CAPEX.com website. You can create the account by entering the details such as phone number, age, email address, password, etc.

The second step is to get access to CFD trading through CAPEX, and you can achieve that by passing an evaluation test. Lastly, document submission and verification is carried out, and the door to trading is finally opened.

Crypto trading at CAPEX

We are a brokerage abode that offers a wide range of tradable crypto CFDs and other assets to its users. Our goal at CAPEX is to provide a wide range of resources to the investors for them to have access to the best trading expertise.

Established in 2016, we have since amassed over 13 million trades worldwide with a volume of $138 billion. Crypto CFD trading with CAPEX allows the traders to have access to top tokens provided by crypto-market capitalization. We at CAPEX charge no commission to its traders for trading on CAPEX and provide the best DRC (direct regulatory compliance) benefits while trading CFDs. We also use trading software such as MetaTrader and our CAPEX WebTrader to provide enhanced UI performance, better technical solutions, and standard regulations.

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