Bitcoin bubble is deflating ... how do I short it?

dude007

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Aug 8, 2009
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36
#21
No expert but in general, surly shorting is as dangerous as going long. If you using margin while shorting and price goes up you screwed. If you using margin while going long and price goes down you are screwed.
Yes, spread-betting seems little better than a casino, with a high risk of being "margined-out" by moderately small movements, or unethical behaviour of these betting companies. It is a real pity that there is not a less risky method of shorting cryptocurrencies right now ... could be very lucrative.
 
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dude007

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#22
In the near term, prices are random or chaotic. Many experts have however indicated that they see cryptocurrencies in the middle of a classic hype cycle. The hype bubble is created by the herd stampeding towards a new technology. Then the herd is disillusioned, followed by a decline in interest. During the decline there are normally one or more bull periods, but the basic trend is downwards. Gartner describes this hype cycle quite well (see "blockchain").

Nothing is guaranteed however, and nobody knows when the next phase of more sober adoption of the technology (
Bitcoin was $8k when this post was started yesterday. It has already dropped 6% to $7520. Not to be scoffed at.
) will commence.

View attachment 511203
Since this post was started Bitcoin has dropped from 8k towards 4k. Think Crypto is heading towards the "Trough of Disillusionment" of the Hype Cycle, with plenty of room to drop further.
 

John Tempus

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#23
Seems the Bitcoin bubble ("hype cycle") is now deflating rapidly following the gains of 2017. I'm with Luno, but do not see any options to short Bitcoin. Is this possible in South Africa?
If you are brave enough to short right now, try https://whaleclub.co

They offer leveraged/non-leverage shorting options between some AAA stocks and top10 marketcap cryptos all done using crypto deposit.

Just beware if you are going to do high leverage/or high deposit and you make a killing there is some reports of them not honoring the earnings but I have been doing fine splitting my trading across multiple accounts to avoid potential high gains on a single account. :)
 

John Tempus

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#24
No expert but in general, surly shorting is as dangerous as going long. If you using margin while shorting and price goes up you screwed. If you using margin while going long and price goes down you are screwed.
You can trade without leverage going short/long , leverage option is usually meant to only exploit near certain directions in a short timespan to maximize gains but for general purpose trading using leverage is just stupid considering interest paid on leveraged positions can be massive if open for too long.
 

rietrot

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#25
You borrow bitcoins from a friend that's hodl and sell them. Then buy back and replace it at a lower price.
 

John Tempus

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#27
Why use a third-party instead of just doing it yourself on exchange?
Not sure if serious. Poloniex offer a few margintrading options coin/coin which is next to useless. Any shorting should be done with coin/USD or whatever other fiat. Shorting coins while pegged with another coin(in this case BTC) is pretty much shooting yourself twice in the face all the way to the bottom.

What did you have in mind with "doing it yourself" on exchange if all exchanges dont offer margin trading where your own shorting is basicly selling back to USD and not making a gain or a loss which defeat the purpose also.
 

saor

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Feb 3, 2012
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#28
on exchange if all exchanges dont offer margin trading where your own shorting is basicly selling back to USD and not making a gain or a loss which defeat the purpose also.
Bitfinex and Bitmex both offer decent margin trading - was just curious why you weren't using them / what the benefit of the 3rd-party was.
 

John Tempus

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#29
Bitfinex for my own concerns about their actual liquidity and Bitmex only offering shorting BTC.

Whaleclub.co at least up to this point caused me no issues and they offer up to decent leverage when/if needed along with more than just margin trading against BTC. All traditional forex trader brokers are also third party, noone (other than a few massively rolled direct desk traders) trading forex online actually work directly with dealing desk on wallstreet. whaleclub is no different in this aspect with their available options trading with crypto.

Last thing, on whaleclub.co I dont need to verify anything as the basic requirement for me using crypto on international platforms.

edit: Ok I see Bitmex added 7 other coins now to the list of available margin trading coins. It looks a bit more appealing to me but still I like having access to non crypto related stuff like Alphabet/AAPL/AMZN non verified using crypto in/out on whaleclub
 
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John Tempus

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Aug 8, 2017
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#35
IG Trading, based in UK.
I am either blind or I need to register to get the info.

Can you deposit via crypto and withdraw via crypto ? BTC or any of the supported crypto ?

Edit: nevermind, just had a look at typical spread between ASK/BID on igtrading, it is daylight robbery. $40 difference between ASK/BID wtf
 
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AlsiMan

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Dec 13, 2018
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#36
Just joined to talk trading - thanks for highlighting the IG platform, created an offshore account and now trading bitcoin there too
 

Lew Skannen

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#37
I use Markets.com for my forex trading. They also offer access to shares around the world and also crypto currency among things. I have been shorting BC when it was still at close to $10k. I made a killing on my trades.
 
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