A new, simpler way to short sell crypto with MyConstant
You might have heard about short selling and read our blogs on it, but you might think it all sounds a bit too complex. And, if you’ve ever watched The Big Short, you could be led into thinking it’s all rocket science.
We have come up with a new product, Short Selling (Simple) that takes the mystery out of short selling crypto and making it a seamless process. In short, it allows you to carry out:
- Quick transactions: The crypto market moves quickly, and our product enables you to be responsive to market changes and make transactions in real time.
- Stop loss protection: You have the ability to limit your potential losses in the event of the price going up – you can skip this step, but it is not recommended.
- Easy to use: It is a great way to feel your way into the world of short selling. We do the technical bits for you, so you can focus on the movement of the market and analyze what triggers those movements.
Before we get into the details of Short Selling (Simple), let’s take a quick look at the concept of short selling.
Just to note, for the time being this product is only available for non-US residents.
What is short selling?
The concept is simple.
By shorting a crypto, you are predicting your chosen currency will fall in price. In order to carry out a short, you effectively buy and lend back the crypto, before purchasing it again at a later date.
At this point, you’ll be hoping that the price has fallen and you pocket the difference in price as profit.
The risk, and all investments do come with risks, is that the price increases – which means that you will have to pay the difference. In theory, the amount could be infinite, which is why short selling can be scary for some investors.
With our new product, you’ll have the ability to retain control over your short selling investment and manage your risk exposure.
Introducing Short Selling (Simple)
Our new, simplified solution is designed to streamline the process of short selling crypto. Instead of wasting time with the technicalities of pairing your chosen crypto, we do the hard work for you.
With Short Selling (Simple), you can get the inside view of short selling, learn the ropes, and control your potential losses. It also enables you to move quickly, allowing you to take advantage of volatility in the crypto market.
How does it work?
Normally with short selling, you have to pair up your USD with the crypto you want to short.
Our new product does all that for you. Here’s how it works in a nutshell:
|Choose the crypto you want to short|
We support BTC, ETH, and BNB pairs.
|Set stop loss and take profit prices|
Select an upper and lower price point to protect your gains and limit losses.
|We sell the crypto at market prices |
The proceeds go back to your USD pair balance.
|Repay the crypto, pocketing any difference|
If your prediction pays off, you keep the profits.
Short Selling (Simple) takes the hassle out of short-selling by making the pairs for you. You simply deposit the USD and select the crypto you want to short.
We will automatically create pairs for the following cryptos:
USD / BTC
USD / ETH
USD / BNB
It’s important to remember that all the normal risks associated with short selling remain the same. It’s crucial you only invest and collateralize what you can afford to lose. Using our stop loss facility is essential, since it will limit your potential losses.
For more details, please check out a previous blog post on short selling with MyConstant we published back in April.
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