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Shorting, or short-selling is a to "return" the tokens or shares to the exchange you not own and then buying the hope of making profits when the price falls.

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Shorting cryptocurrencies involves anticipating declines and then selling them, providing a way to make a profit even during bear markets. Where to short Ethereum � Go to the trading dashboard and select the margin option. � Select short (or sell) and select the amount of leverage, for example, X5. The most common method for shorting crypto is shorting on margin. This method involves borrowing a cryptocurrency (such as BTC) and selling it.

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It also gives traders more options when choosing which crypto to be short. When you purchase a CFD predicting that prices will decline, you are shorting Bitcoin. Factors to Consider. The trader then returns the shares owed to the borrower whilst profiting from the price difference.