With the continuous rise of the price of Bitcoin, the market's call for a foam in the Bitcoin market has become increasingly high. At present, some investors in the market begin to bet on the collapse of the price of Bitcoin and want to short Bitcoin. In fact, the strong volatility and liquidity of the Bitcoin market are more conducive to the migration of traditional short selling methods to the Bitcoin market. So, how to short Bitcoin in China? What platforms can short Bitcoin? Next, let's have a look.
How to short Bitcoin in China?
1. Security transaction
One of the simplest ways to short Bitcoin is to use the cryptocurrency collateral trading platform. Many exchanges and securities dealers allow such transactions, and the collateral trading allows investors to "lend" to brokers to carry out transactions. It is important to know that guarantees involve leverage or loans, which will improve efficiency or increase losses. Many Bitcoin exchanges allow margin trading at this stage in the near future.
2. Futures market
Bitcoin, like other assets, has a futures market. In futures trading, the buyer agrees to purchase the securities containing the contract, which stipulates when and at what price to sell the securities. If you buy a futures contract, you will bet that the price of the securities will also rise, which will ensure that you can get a good deal in the future. If you sell a futures contract, it shows a bearish attitude, which also means that the price of Bitcoin may fall. In this case, Brother Gua suggests that you can short Bitcoin by purchasing contracts that bet on cryptocurrency at a lower price. At the end of 2017, Bitcoin futures trading developed rapidly before and after the cryptocurrency price rose. It can now be used on a variety of platforms.
3. Binary option trading
Call and put options also allow traders to short Bitcoin. If you want to short the currency, you will implement a put option, which may be provided by the custody service. This means that your goal is to sell the loan currency at today's price, even if the price decreases later. According to many offshore exchanges, dual options can be obtained, but the cost (and risk) is high. Compared with futures, one of the advantages of using binary option trading is that you can limit losses by choosing not to sell put options. Therefore, your loss is limited to the price you paid for the put option.
4. Forecast market
The prediction market is another way to consider shorting Bitcoin. The encryption prediction market is similar to the mainstream market. Brother Gua suggested that investors could create a thing and wager based on the results. Therefore, you can predict that Bitcoin will fall by a certain range or percentage. When someone accepts your bet, if successful, you will be profitable.
5. Short selling Bitcoin property
Although this strategy may not be attractive to all investors, if the bet on Bitcoin price is successful, those brave investors can benefit from it. Sell the currency at the price you are satisfied with, until the price drops, and then buy the currency. Naturally, if the price is not adjusted as you expected, you may lose money or lose Bitcoin property in the process.
Short selling Bitcoin will also bring great costs and risks. You need to pay for monitoring or storing cryptocurrency in Bitcoin wallet before transactions occur. You must also bear the risk of Bitcoin price adjustment. If the price rises instead of falling as you wish, Brother Gua reminds you that you may suffer huge losses in the end.
6. Apply Bitcoin CFD
Contract for Difference (CFD) is an accounting countermeasure based on clearing the differential payment between the opening price and the closing price. Like Bitcoin futures, Bitcoin CFD is essentially a bet on the price of cryptocurrencies. When you buy a contract for difference that predicts the price of Bitcoin will fall, you are shorting Bitcoin.
Unlike Bitcoin futures, Bitcoin futures have a predetermined settlement date, and CFDs have a more flexible settlement period. Bitcoin CFDs do not require physical delivery of cryptocurrencies. So you don't have to spend on monitoring. In some Bitcoin CFD markets, traders can sign contracts based on the performance of Bitcoin or its performance compared with legal loan currency or other cryptocurrencies.
7. Apply reverse exchange traded commodities
Reverse exchange traded products are bets that the asset price of the indicator will fall. They are similar to futures contracts and are used together with other derivatives to generate income.
Which platform can short Bitcoin?
Now there are many exchanges on the market that can directly trade Bitcoin contracts. Such platforms can short Bitcoin. Here are five trading platforms that can short Bitcoin.
OKEX Exchange was formerly known as okcoin. Ouyi OKEX is one of the world's famous digital currency trading platforms, which provides customers around the world with spot and derivative trading services for digital assets such as Bitcoin, Lite Coin and Ether. Ouyi OKEX is a Carmichon Exchange located in Malta, which is a market leader in the blockchain industry in terms of trading volume, number of countries providing services, user base, etc. Belongs to OKEx Technology Company Limited. When OKEX was founded, it received an angel investment of one million dollars from the pioneering workshop set up by Tim Draper, a leading investor. Mr. Tim Draper is also an investor in Hotmail, Baidu, Tesla and other leading companies. At the beginning of 2014, OKEx obtained a round A investment of 10 million US dollars from Longling Investment under the founder of Ceyuan Venture Capital, a famous venture capital fund in China, and Meitu (01357. HK), a Hong Kong listed enterprise.
2. Firecoin Global Station
Since its establishment in 2013, Huo Coin Global Station (Huo Coin Network) has received investment from Zhenge Fund and Sequoia Capital successively, and its accumulated trading volume has exceeded 120 million dollars. It once became the largest digital currency trading platform in the world, accounting for 50% of the global digital currency trading share. At present, Huoyuan Group has invested in more than 60 upstream and downstream enterprises, and has established compliance service teams in Singapore, Japan, South Korea, the United Kingdom, Australia, Canada, Brazil, Hong Kong and other countries and regions, providing safe and reliable digital currency transactions and asset management services for millions of customers in more than 130 countries around the world.
3. Coin security network
The founder of Coin Security Exchange is Zhao Changpeng, a Canadian engineer of Chinese descent. Coin Security now ranks among the top three in the global digital currency trading platform. The trading application page of Coin Security is very user-friendly, provides different languages, supports multiple currencies, and often publishes new currencies.
Coin An was founded in 2017 and is headquartered in Malta. We always put user rights and interests first and are committed to providing a safe, fair, open and efficient blockchain digital currency trading environment. At the same time, with the blockchain as the core, we will create a blockchain ecosystem in all aspects. Binance will work with Binance customers to create new blockchains and create history together.
Gate.io (Chinese name: Sesame Open Door) was formerly Biter, Gate The io Exchange is operated by Gate Technology Inc. Gate. Io is committed to providing reliability and your feelings. It not only brings you a safe, simple and fair Bitcoin trading platform, but also promises to maintain your assets and trading information. Gate.io is a global blockchain asset trading platform with attitude. Since its establishment in 2013, gate Io has brought nearly 1000 high-quality blockchain asset categories of transaction and investment services to millions of customers from more than 130 countries around the world. Gate. Io is committed to being a reliable, safe, stable and reputable blockchain asset trading platform, which not only provides users with safe, convenient and fair blockchain asset trading services, but also comprehensively guarantees the security of users' trading information and assets.
CoinEx is a cryptocurrency exchange headquartered in Hong Kong. Its general user service fee is 0.1%. Founded in December 2017, CoinEx is a professional global virtual currency trading service provider. The core team of CoinEx comes from world-famous Internet and financial institutions, including many initial practitioners and investors in the virtual currency industry, and has rich experience in technology research and development and global operations in the virtual currency industry. With its self-developed key transaction matching system and extremely smooth customer experience, CoinEx aims to create the most secure, stable and efficient virtual currency trading platform for global users. At present, CoinEx is already applicable to Chinese, English and other languages, serving global customers in nearly 100 countries and regions.
Speaking of this, I believe you have a certain understanding of how to short Bitcoin in China and which platforms can short Bitcoin. In general, I remind investors that there are still many exchanges in the market that can short bitcoin, but the domestic supervision mechanism for bitcoin trading is not very sound, so there are many exchanges that are not controlled in fact, and are extremely dangerous when trading in such exchanges. Therefore, if you want to trade, you must choose a formal and reliable exchange, Don't follow the crowd blindly.