Similar to other assets, Bitcoin has
a futures market, but if you sell a BTC futures contract, it implies a bearish approach
and a guess that bitcoin will drop in price. If you want to sell your BTC futures
contracts with a great profit, they you may need to Short Bitcoin Futures
BTC futures are live at crypto
exchanges, so you will be capable of hedging Bitcoin exposure or control its
performance by means of a futures product developed by the top and major
derivatives marketplace:
You have many options to short-sell
your Bitcoin Futures. These options include:
Short selling the Bitcoin
directly: This is considered the easiest way to sell your bitcoins. You
can sell off your accessible Short Bitcoin Futures at a price you are at ease
with. Your expectation is that the value of the bitcoin decreases further and
then, if you so decide, you can purchase Bitcoin again at a lower cost.
Margin Trading: Numerous
people start short selling their Short
Bitcoin Futures by making use of a Margin Trading gateway, which is
committed to cryptocurrencies. With this kind of trading, you borrow cash from
a broker and can do the trade, expecting that your stake will pay off. Currently,
many Bitcoin exchanges allow margin trading, so you have an abundance of
options.
Futures Trading: You can
also find ways to short sell your Bitcoins in the futures market, as well and
one such way is Futures Trading. It is nothing but a contract in which as the
buyer, you agree to purchase Bitcoin at a potential date at a certain set
price. In this kind of trading, you are forecasting and expecting that the
Bitcoin price will increase. Thus, when your contract ends you can purchase
Bitcoin below the BTC Futures Price
of the market.
Binary Options Trading:
This is another easiest way short selling your Bitcoins. This type of trading
usually includes two options, such as Put and Call. Through the put option
contract, you will have the right to put up a specified amount of your Bitcoins
for sale. You can set a price yourself at a certain time, which is known as the
strike price. This option gains value while Bitcoin loses its value compared to
the strike price. Notably, you are not compelled to put up the option for sale if
you do not want.
When it comes to the call option
contract, it will offer you the right to purchase shares in the same manner.
With this type of option contract, you will have the choice to purchase a
certain quantity of Bitcoin at a specific BTC Futures Price until a certain date, which is the ending date.
With the instability, you do not
need to wait for a full-on bubble explodes to profit. You can gain from even comparatively
small drops in value, as well as the more tremendous fluctuations in the value
of Bitcoin.
Like with any investment,
learning the way to short sell Bitcoin is not as easy as you imagine. It needs
deep research and some enthusiasm to acknowledge the risk. Most financial consultants
would associate it with betting, but if you correctly play your cards right, then
you can greatly benefit monetarily.
