Did you know knowing your trading personality can help you make more informed investment decision to magnify profits? Find out yours today.

When it comes to investing, there is no type of "one size fits all" advice. Different people approach investing with different priorities and needs. To find strategies that work for you, you need to understand your personality and consider how it affects your trading. Our guide will help you discover your trading personality so you can choose the best strategies for your unique approach to investing.

A trading personality refers to all the traits and characteristics that affect your ability to handle financial trades. It describes your approach to investing and helps you find strategies that suit you.

Many different factors go into determining trading personalities. For example, things like your ability to focus on little details or see the big picture can influence your decision to either day trade for immediate profit or focus on long-term trading. By carefully analyzing the thoughts, emotions and behavioral patterns that impact your trading, you can discern the types of trading that complement your personality.

The world of finance is broad, and there are a lot of different techniques available to traders. Depending upon your personality type, you may naturally gravitate toward a specific type of trading.

 involves holding the same investments for extended periods. Position traders like to capitalize on long-term market trends by doing things like purchasing promising crypto and waiting for it to increase in value. This type of trading tends to attract people who are patient, strategic and analytical. If you don't like risks and prefer low-maintenance trades, it might be for you. However, position trading doesn't usually suit traders who prioritize adventure and spontaneity.

 prefer to close their trades within a few days or weeks of initiating them. They like working on a short-term time frame, and following small changes within price trends. Swing trading is an ideal strategy for investors who are detail-oriented, organized and creative. Those who are cautious and dislike risk, however, may choose to avoid swing trading.

, you buy and sell rapidly to capitalize on brief price fluctuations. Successful day traders are usually quick thinkers who remain calm under pressure and easily identify patterns. This style of trading can also attract fun-loving and risk-seeking traders, but those tempted to use day trading as a form of gambling often end up losing large amounts of money.

Investors approach crypto and stocks quite differently from the way standard traders do. Instead of capitalizing on market trends, they aim for slow yet steady growth of their funds, paying close attention to the company behind the asset instead of just following price changes. Investors tend to be risk-averse and enjoy taking on managerial responsibilities, but more creative traders may become bored by investing.

Top 10 Characteristics of a Successful Trader

Ultimately, there are many different ways to be a successful trader. Though a broad range of personalities can do well with trading, you'll find that most effective traders have one or more of the following characteristics.

How Do Personality Traits Affect Your Trading Success?

) is a useful framework for analyzing your personality traits and trading styles. This psychology-based system theorizes that all humans fall into 16 different categories based on certain traits.

This MBTI classification refers to one's area of focus. Extroverts are outwardly focused and thrive when surrounded by others, while introverts are inwardly focused and think best when alone.

Successful traders are often introverted, since this trait is effective in careers where they work by themselves, for instance focusing on computers or numbers instead of people. However, there's nothing to stop extroverts from becoming traders, too. In fact, their interest in socializing can work well for web3 projects that require networking with others.

This classification describes how people prefer to process information. Those who rely on sensing prefer concrete facts, practical descriptions and realistic concepts. Intuitive people enjoy theoretical ideas, hypothetical scenarios and metaphorical descriptions.

At a glance, you might assume that people with a sensing personality do better with trading. It's certainly true that they’re more likely to research things carefully and make data-based decisions related to hard facts. However, intuition can also be surprisingly useful for traders who like to look at the big picture and use economic or mathematical theory to inform their trading decisions. They often do an excellent job of synthesizing data from multiple sources so that they can trade creatively.

This classification refers to a person's decision-making abilities. An individual with a feeling personality tends to base their fundamental analysis on feelings, personal preferences and a desire for harmony with others. Meanwhile, those with a thinking personality often base decisions on logical reasoning and ethical values.

For the most part, people with a thinking personality tend to be more effective traders. They’re often more levelheaded, and less likely to be swayed by anxiety or enthusiasm. Of course, people who fall into the feeling category can still trade, but they need to be aware of their tendency to be influenced by emotion and take steps to avoid letting it push them into poor trading decisions.

This MBTI classification addresses how people prefer to live. Those with a judging personality like things to be black and white and prefer technical analysis. They respect rules and do well with detailed instructions. Meanwhile, people with a perceiving personality like to live spontaneously, and see rules and instructions as optional.

Judging personalities often do well with trading. Especially when following tried-and-tested trading strategies, they’re unlikely to make careless mistakes that cause major losses. However, their lack of flexibility can lead to problems when the market moves in surprising directions. Perceiving people may be prone to making ill-informed trades, but their ability to think on their feet can help them better adjust to unexpected price changes.

Understanding Your Trading Personality for Bybit’s Product Suites

As an ISTJ crypto trader, you tend to adopt a methodical approach to trading. You’re not afraid of digging into the nooks and crannies of a project. With a meticulous eye for detail and a preference for structured strategies, you prioritize in-depth research over market sentiments. Your patient, disciplined and risk-averse nature allows you to adhere to a well-defined plan, focusing on long-term value and stable investments.

Being the heart and soul of a community, you embody the spirit of an ISFJ guardian, a knight in shining armor. Like a crypto superhero, you swoop in to safeguard projects promising a better future for crypto. Your cape billows with the rushing wind as you remain a steadfast ally to the causes you champion. You are the GameStop warrior, a true Keith Gill* at heart, holding the line until the end and showing the world that your faith and determination are unshakeable.

*The man behind the GameStop short squeeze of January 2021.

Unlike those who are in it for the money, you’re a crypto dreamer who dives into the space for the intrinsic value. Schemes to get rich quick may be tempting, but they’re never the key drivers of your actions. You're the perfect blend of intuitive thinking and long-term vision. Your knack for envisioning the future shines as you see not just what it is, but what it can become. Trust that gut feeling of yours. It's probably the inner crypto compass that will guide you through the noise and chaos.

A natural-born strategist, you navigate the cryptoverse with precision and foresight. With your radar for technical innovation and your nose for the next big thing, you're always one step ahead of the game. Herd mentality? Never in your vocabulary. When the going gets tough, you take a step back, look at the larger picture and make your moves like a chess grandmaster.

You're no stranger to crypto trading: API, bots and AI-powered strategies are all part of your tool kit. As an early adopter, you're all about disrupting the status quo. You're constantly tinkering and experimenting with all the new and exciting things the crypto space offers. Nothing can quell your adventurous spirit, because you have that fire in your belly. Competitive by nature, you're never deterred by setbacks, knowing that a treasure trove of opportunities awaits on the next turn.

: Bybit Copy Trading and Futures Grid Bot

As an ISFP crypto trader, you’re part of a unique breed. You're not the typical cookie-cutter profit-seeker. Intimately connected with your inner emotions, you seek projects that resonate with your personal values. You're a highly creative and independent thinker, constantly looking for innovative ways to build your portfolios: a canvas for your creative expression, carefully curated with a touch of artistic flair. If you're ever feeling in a rut, just think outside the box and let your creativity take the reins.

Intermediate

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What Type of Trading Personality Do You Have?

Worried about bear market sentiments and volatility? Make sure to add these blue chip cryptos to your investment portfolio.

It’s nothing new: Whenever prices start to turn south in the financial markets, investors immediately seek sanctuary in safe haven assets with solid fundamental value. In other words, they seek out blue chips.

In this guide, we’ll dive into blue chip coins and break down what they are, how they work, how they differ from blue chip stocks, and most importantly, how to invest in them to reduce your risk while enjoying long-term profits.

Blue chip cryptos are established cryptocurrencies with institutional status, strong reputations, higher liquidity, lower volatility, and sizable market caps.

The term “blue chip” has its origins in the game of poker. In 19th-century America, the game of poker ruled the frontier landscape as red, white and blue poker chips regularly exchanged hands. The blue chips always held the highest value.

The term is popularly believed to have first been used to describe stocks in the 1920s. According to reports, a Dow Jones employee coined the term after noticing certain stocks trading much higher than others.

Throughout the century, “blue chip” came to refer to much more than just a high-priced stock. Today, it refers to stocks issued by established, financially stable companies with strong reputations for weathering storms and withstanding the test of time.

When it comes to crypto, the definition of “blue chip” remains much the same. Blue chip coins, like Bitcoin and Ethereum, have established themselves as institutions in the crypto/blockchain space.

Bitcoin is the original crypto and unquestionably the most established. While it is still subject to volatility at times, it has managed to consistently increase in value over time since its inception in 2008.

Due to their relatively recent emergence, blue chip cryptos like Bitcoin and Ethereum haven’t exactly stood the test of time like their stock cousins. However, they have weathered downturns and bear markets, and they are considered to be financially stable by the masses.

Traditional blue chip stocks are typically a component of reputable indexes, such as the Dow Jones Industrial Average, S&P 500 and the NASDAQ in the U.S.. In the UK, blue chips call the FTSE UK Index home. While no definitive benchmark exists as far as market capitalization, a generally accepted benchmark for a blue chip stock is a market cap of $5 billion.

Blue chip stocks are leaders of markets, industries and sectors. Some examples of companies with blue chip status include Amazon, Google, Walmart, Disney, Coca-Cola, General Electric and IBM. These are all highly liquid, highly respected, highly reliable, and most importantly, highly stable. This makes them safe investments, especially in bear markets.

For the most part, the same holds true for blue chip crypto. Over 18,000 different crypto coins have been minted, and more and more seem to be added each day. However, very few have earned a strong enough reputation or reached a market cap worthy of blue chip status.

Despite being fairly new and not having existed for as long as some blue chip stocks, Bitcoin and Ethereum have stood out as blockchain pioneers and blue chip cryptos you can count on in almost any market condition.

First and foremost, blue chip cryptos aren’t exactly the new kids on the block. In fact, quite the opposite is true. They’ve been around for well over a decade and have withstood a wide variety of market conditions. As the original cryptocurrency and founding parent of blockchain technology, Bitcoin has survived longer than any other, helping it achieve its blue chip crypto status.

In the traditional world of stocks, the term “blue chip” is used to describe a well-established company globally recognized as a reliable investment. Blue chip companies have strong reputations for creating quality products or services and weathering downturns. The same can be said for blue chip coins like Bitcoin and Ethereum, which have strong reputations within the investor community and the entire world.

No other coin has as much institutional support as Bitcoin. While Ethereum and its DeFi platform are another blue chip crypto with some serious investors, Bitcoin is currently a part of corporate balance sheets, CME futures, ETFs, and more. Large companies like Tesla hold billions in Bitcoin alone.

Traditionally, a minimum market capitalization of $5 billion is needed to earn blue chip crypto or stock status. As two of the crypto world’s heaviest hitters, Bitcoin and Ethereum blow this figure out of the water. With respective current market caps of $1 trillion and $500 billion, they definitely meet the mark.

High liquidity and being able to easily move in and out of positions is another hallmark of blue chip coins and stocks. Billions of BTC are traded every day, so unless you want to buy or sell millions worth of coins, you’ll find a market flush with liquidity whenever you need it.

At its core, crypto is all about decentralization. However, some coins are more decentralized than others. Bitcoin, Ethereum and DeFi in general are imbued with the concepts of equality and independence, and represent the embodiment of democratic ideals.

Bitcoin checks all of the boxes above, making it the premier blue chip crypto and a safe haven for anyone looking for less volatility and greater long-term growth. As the very first crypto ever created, Bitcoin has survived longer than any other cryptocurrency and certainly qualifies as a high-quality asset.

With its long track record, it should come as no surprise that Bitcoin also has the largest market cap of any cryptocurrency. In fact, BTC is such a driver in the crypto space that the price movements of other blue chip coins and non-blue chip coins alike often depend on it for guidance.

Unlike with other cryptos and blue chip coins, Bitcoin investors and traders enjoy a first-mover advantage. They also benefit from Bitcoin’s scarcity. With only 21 million BTC ever to be available, the price of BTC continues to climb and prove itself as a rock-solid blue chip crypto investment.

As a whole, ETH commands 20 percent of the crypto market. Yet, it continues to improve and evolve, making it an ever more important component of the cryptocurrency space.

With its widespread usage and advanced technology, Etherium is without a doubt one of the top blue chip coins worth investing in almost any time, but especially in times of crisis when considerations of safety and security outweigh the desire for explosive short-term gains.

If you’re interested in investing in blue chip cryptos according to past performance, you first need access to a platform like Bybit or another cryptocurrency exchange that sells it. You then need to convert your government-issued fiat currency into blue chip coins and follow a few more steps.

To buy and sell blue chip crypto, you need to choose a cryptocurrency exchange to use. Crypto exchanges are similar to stock trading platforms like E*Trade, TD Ameritrade or Schwab. As one of today’s top exchanges for investing in blue chip coins and others, Bybit is an excellent option.

Once you’ve selected a reputable crypto exchange like Bybit, you then need to 

by providing your name, address, email address, and any other information required to verify your identity and residential address.

A photo ID and a recent utility bill or bank statement will also be needed. This is known as the Know Your Customer (KYC) process, and it’s a legal requirement for exchanges operating in the U.S. While most accounts are instantly approved, you may have to wait a day or two for your account to be verified.

In order to invest in blue chip coins, you’ll next need to fund your account. The cheapest way is to link your bank account and exchange account. However, this can take a few days. To save time, you can buy blue chips with a credit or debit card instead. The fees are a little higher, but you have the added benefit of near-instant deposits.

With your account funded, it’s finally time to buy some crypto. Bybit and similar popularly used platforms allow you to easily scan, look at charts, and purchase any number of cryptocurrencies, including blue chips like Bitcoin and Ethereum.

To buy crypto, you simply select a crypto, enter how much you’d like to buy (how much you want to spend), and let the exchange process the transaction. There are different types of buy orders you can execute, depending on your trading experience and goals, but for the most part, that’s all there is to it.

The second option is more popular and is highly recommended. With your own external crypto wallet, you hold the keys and have complete control over your crypto, with zero susceptibility to third parties. Known as “cold storage,” these store your cryptocurrency offline on a USB device.

While learning how to set up and use a crypto wallet can take some getting used to, it’s a safer overall choice for avoiding hackers, errors, outages, and anything else that might pose a threat to your funds’ safekeeping on an exchange.

If you’ve been a fan of crypto and DeFi for any length of time, it’s great hearing terms like “blue chip” being used to reference them. We’re used to hearing about safe stocks with predictable returns, but we’re just now starting to see this attitude toward the crypto world. With the rise of blue chip cryptos like Bitcoin and Ethereum, investors can safely put their money into assets that possess the rare combination of both security and profit potential.

Beginner

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What Are Blue Chip Cryptos: Are They Safe Bear Market Options?

Spooked by an incoming crypto flash crash? Why not learn how to short crypto and maximize your profit from both ends of the market!

Volatility is an intrinsic characteristic of the cryptocurrency market. A currency that’s on a hike today might experience a dip tomorrow that you couldn’t have imagined. In fact, many coins’ rates constantly change throughout the day. Crypto volatility coupled with regulatory actions can lead to fear-driven flash crashes and slight retracements after big rallies. To avoid experiencing loss when this happens, you can leverage a concept called 

 that allows you to make money when prices are falling — even without owning crypto. In this article, we’ll explain crypto shorting and its associated risks.

Shorting crypto is the process of selling cryptocurrency at a higher price, with the aim of repurchasing it at a lower price later on, ideally in situations where a crypto asset’s price is expected to fall.

The reason it’s called short selling is that you’re “short” of the coins. You don’t actually own the crypto that you intend to profit from. To understand shorting, you need to be familiar with crypto long and short positions. When you go long, it basically means that you’re buying cryptocurrency, expecting its market value to go higher. For instance, you buy an altcoin at $10 and expect its price to hit $12. You sell it once the price increases in order to make a profit.

On the other hand, shorting means you borrow a cryptocurrency and sell it at the current market price, expecting it to fall. Then, you buy the coin when its price falls or retraces slightly, making a profit which is the difference between your selling and buying prices.

Shorting is a way to make money off the decline in an asset’s value. Thus, traders can opt for shorting when they expect a coin’s market value to decrease. Shorting crypto is a risky business, since markets are often unpredictable. Of course, there’s the potential for gains, but with the market’s volatility the likelihood of large losses is equally probable.

When you hold a long position, the currency’s price might drop, but rarely to zero. Even though you don’t make any money, you still have your original investment. When you’re shorting, a coin’s price can rise indefinitely, increasing your losses. That’s why you need to make sure you’ve done your research before you take the leap. If you’re confident about your research and are positive that the price will indeed fall, go ahead and take the calculated risk because it could translate to thousands in profits.

Marketplaces like Bybit and Lendingblock are making it more straightforward for lenders and borrowers to find each other and capitalize on the soaring interest in crypto shorting. With this increasing number of resources, short-selling crypto is becoming more accessible to traders.

Traders have different reasons for short-selling cryptocurrency, depending on how much they want to gain or the kind of analysis they’ve conducted. Following are some reasons for short-selling crypto.

Sometimes, a particular currency might be in a price bubble, or be overvalued at a specific point in time. Traders may pick up on this trend, wanting to short sell their crypto for profit.

Therefore, they short crypto and wait for its retracement to begin. When short selling crypto according to valuation metrics, use a fundamental trading style and analyze the intrinsic value of a coin against its current market price so you’re aware of when you can buy back the borrowed crypto coins.

Crypto’s volatility might be a matter of concern for risk-averse investors, but traders can leverage this characteristic in order to make money. Historically, it’s evident that crypto pricing can rise just as quickly as it can fall.

Traders who have an appetite for risk are naturally drawn to these fluctuations, since they offer potentially large rewards. Thus, traders who are knowledgeable about changing trends and have expertise in the field use the currency’s volatility to their advantage.

While crypto’s volatility might pave the way for short selling, it affects the long position negatively. For instance, if you already have Bitcoin and you believe its price will soon fall, you can decide to short sell the currency.

If your predictions are correct, the profit you get from short-selling crypto can end up reducing or exceeding your long position’s loss. Simply put, having a 

 in place minimizes your losses in a bear market.

What Are the Risks of Short Selling Crypto?

Short selling crypto is definitely a way to make some extra money when the market is down, but you need to consider its risks, too. Below are some notable downsides to shorting cryptocurrency.

When you buy and hold cryptocurrency in the hopes of selling it for a higher price in the future, you’re only exposed to the risk of ending up with a currency that didn’t reach the price you wanted it to.

At the end of the day, you still have your currency, and can continue to hold it for as long as you wish.

On the other hand, your potential losses are limitless with shorting crypto, since they go beyond your initial investment. If the currency price keeps rising, you might have to borrow it at a higher price to lower your average cost if you’re intent on covering without incurring losses.

Bear in mind that when you short sell crypto, you don’t actually own the currency. Instead, you’re borrowing it from a broker, who charges you interest for as long as you hold the coins.

Suppose the currency’s price doesn’t decrease per your predictions. You may have to end up sitting on it for a long time. While this rise is happening, the interest keeps piling up, eating a chunk of your profits.

Before you use any method to short sell crypto, you have to find a trend. Since the market is highly volatile, many factors can send it in either direction. For instance, politics, hype culture and the influence of notable people can disrupt the crypto market.

If you want to know how to short sell Bitcoin, make sure you study its trends, such as sudden interest on the part of a high-end company or billionaire. After that, you have to open your margin trading account. Most crypto brokers have the accommodations for short selling. However, you also have to check your country’s regulations to ensure you’re not challenging any legal guidelines.

Now you know what shorting in crypto is. Let’s discuss how to short the crypto of your choice using different methods.

When learning how to short Bitcoin or any other cryptocurrency, this is the first method most people come across. Simply put, you borrow crypto from an exchange at a specific price and sell it.

Then, you wait for the price to go down. When it does, you buy the currency and return the borrowed coins to the exchange. In this way, you earn the difference between the two prices.

Like all other assets, some cryptocurrencies also have futures markets, in which you agree to buy a security in a contract. The contract specifies the price at which the security will be sold and the time when this will happen.

In buying a futures contract, you bet on the price of a security to rise. Doing this allows you to earn a profit on that security in the future. When you sell the futures contract, it indicates that you expect the price to decline in an upcoming bear market.

If you want to short Bitcoin futures, you can do it on the Chicago Mercantile Exchange, the world’s largest trading platform for derivatives, or with 

These are one of the most popular ways to short crypto. With contracts for difference, brokers allow you to bet on a decrease or increase in an asset’s price without having to actually own the asset.

You just have to deposit a part of the margin account’s fund to guarantee that you’ll be able to buy the crypto at the particular price you’re betting on. The deposit remains in your possession, and the exchange or broker only holds it as collateral.

Thus, you only need to supply a certain fraction of the total trade amount to open your position. Because of this, you can amplify your return on investment (ROI) if the crypto moves in the direction you’ve bet on. However, this method obviously carries enormous risks if the currency’s price moves in the opposite direction to that of your prediction.

Can you short crypto without putting your investment at risk? Sort of. If you can deal with complex derivatives in a bear market, you can add buying crypto put options to your list of methods on how to short crypto.

This option gives you the right to purchase a coin at a predefined price on a predetermined date. However, it’s not an obligation. Meanwhile, a put option gives you the right to sell the cryptocurrency.

For instance, if you think that Bitcoin’s price will drop in summer2022, you can buy a Bitcoin put for three months with a price of $30,000. If the price of Bitcoin declines below this strike price on the predetermined date, your put will earn you a trading profit.

On the other hand, if the price remains high, you won’t lose anything except the option premium, which is the fee you paid for holding the option.

If you want to learn how to short crypto while interacting with other investors, then consider prediction markets. These are similar to mainstream conventional markets.

As an investor, you could predict that a specific cryptocurrency will decrease by a particular percentage or margin. Then, someone else has to take you up on that bet. If the price really does go that way, you earn a profit. Some popular prediction markets include Polymarket and Augur.

Since shorting crypto is based on several factors, you have to ensure you’re taking the right approach. After all, the last thing you’ll want is to short sell crypto during a false retracement. The following are some tips to help you out.

 refers to the use of real-world data to predict how the crypto market will behave in the future, which requires looking at the past performance of the currency you’re interested in, such as its movement and volume.

For instance, if you want to know how to short Bitcoin, you’d look at the trading volume of Bitcoin today in comparison to the past few months.

Technical analysis is based partially on 

, which asserts that the pricing in a market is dependent on everything from regulations, current demand and past demand to a trader’s knowledge of the coin, their expectations and future demand for the cryptocurrency.

The crux of technical analysis is that history will repeat itself in terms of trends and pricing. This information is then used to make predictions about future market sentiment.

Moreover, technical analysis is based on the idea that any movement in the crypto market is not merely random, and is based instead on a trend, either short-term or long-term. In most cases, if a currency has followed a trend, it will eventually follow the opposing trend.

 used in technical analysis to help with predicting price crashes and retracements:

With these indicators, you can use trends to determine the opportunity for profits with an investment. You can also use some statistical tools, such as 

When you’re learning how to short Bitcoin or any other altcoin, you need to understand moving averages. In simple terms, moving average refers to the price of a cryptocurrency over a certain period. Typically, the moving average depends on the trading price of a coin in the past 20 days. To make your predictions more accurate, you can connect all of your moving averages.

However, all of these are complex statistical concepts that take some learning. If you’re a novice who’s still learning how to short Bitcoin and other currencies, you may be hesitant to get into complex economics. Keep in mind that factoring in these indicators will allow you to make smarter investments.

Yes, we said “the news” — and not just the crypto news, since politico-economic events can send a market in any direction. Government 

 and regulations can lead to flash crashes in the crypto market.

If you suspect something like this is about to happen, you can capitalize on the situation by shorting crypto in the bear market. However, make sure you’re not going against any government guidelines in the process since that could land you in significant trouble.

Can you short crypto during sudden rallies? Yes. This is one of the best times to short any coin. During these rallies, the assets are overbought due to the fear of missing out (FOMO). After the hype dies down, the coin comes back to its original value or declines, providing you with a chance to make profits.

Some experts might not believe cryptocurrency possesses any “fundamentals” at all, since its markets have such a short history. However, you can still use 

 (FA) to increase your chances of making the right investment decisions.

When doing so, uncover the forces that drive the supply and demand of the cryptocurrency you’re interested in. Some examples of relevant variables include market sentiment, news, trading, adoption and transaction activity.

With fundamental analysis, you study the intrinsic value of a currency. You look at both external and internal factors to determine if an asset is undervalued or overvalued. Since cryptocurrency’s fundamental analysis isn’t the same as that of traditional markets, three different metrics are commonly used.

You can observe these metrics by looking at the data on a blockchain. In fact, you don’t have to do very much, since different websites have already generated this data. For instance, you can see data charts for different cryptocurrencies when 

Transaction count also gives you a fair idea of the activity that takes place on a network. You can use moving averages and even plot a specific time period to determine how the activity surrounding an asset changes over time.

However, use this metric with caution. There’s no guarantee, for instance, whether a high transaction count is due to unique active addresses or the same people transferring funds between their different wallets.

Transaction value tells you the number of transactions completed in a certain period. For instance, if ten people transfer Bitcoin in one day, the transaction count would be ten. If each Bitcoin were worth $40,000, the total transaction value for the day would be $400,000.

Now that you know what shorting crypto is about, it’s time to learn 

 to short sell crypto. Ideally, look for crypto exchanges that offer high trading volume for maximum liquidity. Some crypto exchanges that allow shorting include:

Start by making a margin account and logging in to it. Search for the BTC/USD trading pair interface and choose between isolated margin or cross margin. Then, click on “transfer” to send your collateral to the exchange.

After that, start automatic borrowing and set up an auto-repay order. If the price drops, the amount you borrowed from the exchange will be repaid automatically. However, if it goes in the opposite direction, you need to repay the amount manually.

Can you short crypto after reading this guide? Well, you should be able to at least get started. In a nutshell, shorting crypto means selling it at a higher price because you expect its price to decline due to fear in the market or retrace after a price rally. This lets you buy it back later at a lower price. Hopefully, with our handy guide, you now know what shorting crypto is all about, and where to do it legally.

How to Short Crypto So You Profit During Crashes And Retracements

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What Type of Trading Personality Do You Have?

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What Are Blue Chip Cryptos: Are They Safe Bear Market Options?

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How to Short Crypto: Profit During Crashes and Retracements