Bitcoin has significantly outperformed traditional assets over the past decade due to its fixed supply, transparent issuance mechanism, and continuously growing demand. However, this long-term rally has not been smooth sailing, with several sharp corrections and bear market cycles interspersed. While "buy and hold" is the most common trading strategy, savvy traders know that downturns also hide profit opportunities. When investors sell high and buy back low (i.e., short selling), they can profit from the price difference.
This article will systematically analyze the core concepts, operational principles, risk assessments, and practical techniques of Bitcoin short selling, helping traders interested in hedging strategies expand their trading toolkit.
Going Long vs. Going Short: Understanding the Two Sides of the Cryptocurrency Market
Crypto traders often use "long" and "short" to describe market positions. When traders establish a long position, rising asset prices generate profits; conversely, a short position benefits when prices