野爷
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I found that many new investors don't even understand the concepts of shorting and going long.
First of all, the profit from shorting has an upper limit. If you short with 100u at 20x leverage, your profit ceiling is 2000u. No matter how much the coin drops, you can't exceed 2000u.
The profit from going long has no upper limit. If you go long with 100u at 20x leverage, if the coin price doubles, that's 2000u; if it triples, that's 4000u.
From the opposite perspective, altcoins, especially meme coins, are not suitable for shorting because if they skyrocket, your losses have no limit, completely depending on how much the market maker decides to pump. Even if you win 10 times, losing once will wipe everything out. Shorting is only suitable for mainstream coins in a downtrend, as mainstream coins can't skyrocket several times or even dozens of times in a single day, and there will generally be downward fluctuations when exiting for profit; it won't always go up.
First of all, the profit from shorting has an upper limit. If you short with 100u at 20x leverage, your profit ceiling is 2000u. No matter how much the coin drops, you can't exceed 2000u.
The profit from going long has no upper limit. If you go long with 100u at 20x leverage, if the coin price doubles, that's 2000u; if it triples, that's 4000u.
From the opposite perspective, altcoins, especially meme coins, are not suitable for shorting because if they skyrocket, your losses have no limit, completely depending on how much the market maker decides to pump. Even if you win 10 times, losing once will wipe everything out. Shorting is only suitable for mainstream coins in a downtrend, as mainstream coins can't skyrocket several times or even dozens of times in a single day, and there will generally be downward fluctuations when exiting for profit; it won't always go up.
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