$BTC
📉 Short Selling in Crypto 2025
Introduction:
Short selling allows you to profit from the decline in cryptocurrency prices. Due to high volatility, this strategy is popular but fraught with risks.
How does it work?
1. Borrow the asset (BTC, ETH).
2. Immediately sell at market price.
3. Buy at a lower price and return the asset.
4. The difference = profit.
Best tools:
- Binance Futures: 125× leverage, Funding Rate every 8 hours.
- ByBit: 100× leverage, liquidation protection.
- dYdX (DeFi): 20× leverage, permissionless.
- Aave: borrowing for short selling.
Strategies:
- Technical Analysis: bearish patterns, RSI < 30.
- Risk Management: Stop-Loss 5-10%.
- Monitor Funding Rate.
- Regulatory news and network updates.
Risks to watch out for:
- High leverage → quick liquidation.
- Rapid market changes (like ETF announcements).
- Funding fees may consume profits.
Tips for beginners:
- Start with 2×-3× leverage.
- Test on a demo account.
- Don't put more than 1% of capital in a trade.
BTC Funding Rate + Bearish Pattern
💬 Have you tried short selling before? Share your experience!
#WriteAndWin #WriteAndWinCompetition #ShortSelling #Crypto #Futures #DeFi #FundingRate
