Basically, shorting works by allowing you to borrow an asset, such as Bitcoins, and sell it at its current price. Later on, you purchase the Bitcoins to pay back the person or company you borrowed them from.
What is Bitcoin short and long?
In order to short and long Bitcoin, you must have an account in one of the Bitcoin exchanges. … Short selling Bitcoin can be done by temporarily selling the Bitcoins that you own and buying them back at a lower price.
What is a short vs long position?
Having a “long” position in a security means that you own the security. … A “short” position is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will decrease in value. If the price drops, you can buy the stock at the lower price and make a profit.