How To Make Money Shorting Bitcoin And Other Cryptocurrencies

[av_video src='' format='16-9′ width='16' height='9′ custom_class=” av_uid='av-2ahh9z']

After Bitcoin went from $100 to over $1,000 in 2013, I became very vocal about Bitcoin being over-valued.

In fact, I didn't just talk about it…

I put my money where my mouth is and starting shorting Bitcoin from the $900's down to the $200's.

After becoming a top contributor on TradingView and having great accuracy with my trades, I wrote a book on How To Trade Bitcoin.

How To Short Bitcoin In 5 Steps

  1. Find the right broker – One that offers margin trading, has coins available to borrow, and has great liquidity.
  2. Borrow however much bitcoin you want to short,
  3. Sell bitcoin at the current market price.
  4. Wait for price to fall and hit a profit target (or close the position for a loss if it hits your stop loss order).
  5. Buy bitcoin at a lower price (hopefully at your target) and profit.

There are a few things to keep in mind when shorting bitcoin:

  • You need to trade through the right exchanges. There are only a handful of exchanges that allow shorting and have good liquidity.
  • You want price to go down very quickly after entering a short. It's not a good idea to hold shorts for long periods of time, or to leave an open short with no stop loss order.
  • Risk management is key! When shorting, you can lose MORE than the value of your account. Before getting into a trade, make sure to identify your “stop loss” area, or where you'd get out if price went against you.


About The Author

Chris Dunn is the founder of Skill Incubator. He is an active investor and entrepreneur with the mission of helping people learn Skills to thrive in today's economy. Chris spends his time testing and building multiple streams of income and investing the profits. Read more here.