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Two reasons you should not short Bitcoin. 1) Actual legitimate Bitcoin payments are increasing and real. https://blog.bitpay.com/bitpay-growth-2017/ https://b
by josephagoss 9y ago
Two reasons you should not short Bitcoin.
1) Actual legitimate Bitcoin payments are increasing and real.
https://blog.bitpay.com/bitpay-growth-2017/ https://blog.bitpay.com/bitpay-growth-2017/
2) Even if this whole thing does collapse, never short something like Bitcoin unless you have unlimited cash to support such a short. Even if you're right, can you continue to sustain your short if the peak is $100,000 a coin before the collapse? (And the new bottom is $10,000, still higher than right now)
If the price goes there, can you afford the short?
- tbtowzhtow 9y agoTraders will devise a suitable risk management plan prior to initiating a short position. Unlike the media driven nonsense about a large activist shorting a bull market permanently, many traders can and do make leveraged long and short trades all the time, with the intention of exiting at a loss if the trade doesn’t go immediately (for some definition of immediately) in their favor.
- dnautics 9y agoWhat about a put instead of a short? There aren't any options markets yet, but that might be interesting. Also a smart shorter will always put in a stop loss price, but stop losses can slide because cryptocurrencies move fast.
- Nothorized 9y agoHow can a single coin attain $100,000 ?
- garmaine 9y agoBy someone being willing to spend $100k to obtain one. I’ve been watching bitcoin since sub-$1 prices. A further 10x increase at some point is not so crazy.
- cinquemb 9y agoThere's a dead comment that says this: >* Traders will devise a suitable risk management plan prior to initiating a short position. Unlike the media driven nonsense about a large activist shorting a bull market permanently, many traders can and do make leveraged long and short trades all the time, with the intention of exiting at a loss if the trade doesn’t go immediately (for some definition of immediately) in their favor. * In my experience working at prop firm that was trading (speculating) on futures, this is the case. We would enter leveraged short/long positions based on some kind of signals with some kind of risk framework for all assets in the portfolio.