The cryptocurrency market is bleeding. As of this writing, major cryptocurrency Bitcoin is down nearly -32% in the past seven days. The BTC price stands at $21,133.28. Cryptocurrency investing and trading has become incredibly favored mainly due to changes in the value of different cryptocurrencies. This post is all about the best cryptocurrency exchanges to sell short during the crash. Let’s take a look in more detail.
Thinking of “shorting” Crypto?
Volatility is an inherent attribute of the cryptocurrency world. A coin that walks around today might encounter a drop tomorrow that users couldn’t have guessed. In fact, the prices of many coins adjust continuously throughout the day. Crypto volatility tied to regulatory action can usher in an instantaneous fear-driven drop and distant retracements after giant rallies. To avoid suffering a loss when this happens, users can use a vision called short sale which allows users to earn money when prices fall.
This is a short sale because users are “short” of cryptocurrencies. They don’t actually own the crypto they plan to make money from. To understand shorting, one must be aware of long and short crypto positions. Crypto long mainly involves users buying cryptocurrency, hoping that its market value will increase. For example, a user buys an altcoin at $5 and hopes its price will reach $15. He sells it once the price rises to make a profit.
On the other hand, short selling indicates that users borrow a cryptocurrency and trade it at the current market price, wishing it to go down. Then that user buys the coin when its price goes down or barely goes down, earning a profit which is the distinction between the sell and buy prices.
Best Cryptocurrency Exchanges: Binance
Binance is a crypto exchange with stature and favor in the crypto world. It was started by Changpeng Zhao. Binance is now the leading crypto exchange in terms of trading volumes.
After China banned crypto in 2017, Changpeng Zhao moved its headquarters to Japan. In recent years, the base of operation of the crypto exchange has shifted to various countries. In 2020, CZ moved the company’s headquarters to Malta, a country renowned for its openness to crypto and blockchain. Currently, Binance’s headquarters are now located in Cayman Island, with its other offices spread across 50 locations around the world.
Binance offers traders a comprehensive inventory of digital assets to trade with its BNB token also encompassed. However, the platform continues to increase the number of tokens backed up. Another reason why it has a huge range of tokens is that it caters to trending tokens which are quickly listed so that its users can buy them.
It has a desktop app but it offers mobile users a mini version on their Android and iOS devices. Binance sets withdrawal prices based on market movements while holding coins on the platform is free. Trading costs on the crypto exchange are 0.1% when users do not manage expenses using BNB. Hosting a wallet on the crypto exchange is completely unlimited.
Best Cryptocurrency Exchanges: Kraken
Kraken is one of the best-known crypto exchanges. With currently 55 different cryptocurrencies listed on the platform and trading fees of 0.16% and 0.26% respectively, the California-based company has successfully proven itself as a trustworthy site to sell cryptocurrency. cryptocurrencies.
The exchange performs most of the regulators in all the countries where it works. With the additional factors introduced, such as staking, margin, and futures trading, the platform has expanded globally. The somewhat complex user interface and lack of investment security are some of the minor drawbacks, but this is not a major issue considering the otherwise very solid advantages.
Kraken has more complex trading for tech-savvy users. This includes low-fee margin trading, which is a more demanding investment arrangement that can potentially generate higher returns. It also features fortune transactions on typical cryptocurrencies. Margin fees vary by cryptocurrency. Just like many crypto exchanges, Kraken primarily uses a maker and taker cost action. Basically, it indicates that users accept lower fees if they mix liquidity in the market rather than take it away.
Best Cryptocurrency Exchanges: Bitfinex
Bitfinex is one of the largest and oldest crypto exchanges in the world. The Hong Kong-based trading platform supports different tokens and coins. Users can also use it as a trading platform, but very few understand that users can now lend their assets to Bitfinex.
Bitfinex has a separate interface for new traders and professional traders like many exchanges.
This allows new merchants to carry and use primary services. So, if users want to trade or invest casually and are not curious about more advanced options, they can effectively access a more detailed interface. On the other hand, professional traders can use many trading tools. If users need a good platform with superior trading features, they should trade with Bitfinex. This trading platform is also renowned for its fierce priority on security and stability.
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Best Cryptocurrency Exchanges To Sell Short During The Crash And Make Money
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