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Ethereum: Can bitcoins be «sold short»? Or are there «put» options?

CRYPTOCURRENCY

Bitcoins can be sold briefly?

The concept of selling short active ingredients, also known as «sabotage» or «uncovered sale», has been used through history to speculate on market prices and to exploit price movements. However, in the world of cryptocurrencies such as bitcoin, things are slightly more complicated.

Bitcoins can be sold briefly?

In theory, yes, bitcoins can be sold short. This means that an investor can sell bitcoins that I have not, essentially betting on its value, borrowing from a creditor or an exchange of cryptocurrencies. The idea is to buy the assets at a low price, then to «sell» it at a higher price before selling it again.

There are several ways to implement the uncovered sale in the world of cryptocurrencies:

  • Options of options : Investors can sell options on bitcoins, which gives them the right one, but not the obligation, to buy or sell bitcoins at a predetermined price (price of exercise) at a specified period (expiration date).

  • TERMS CONTRACTS

    Ethereum: Can bitcoins be

    : similar to optional contracts, the term contracts allow investors to speculate on the future value of bitcoins.

  • Short positions : Investors can take short positions by borrowing bitcoins, then selling it before buying them or holding them until they are desired.

Are there any «put» options?

Although optional contracts allow speculation and uncovered sale, there is a concept called «sales option» which is generally associated with the holding of an asset. An option can offer the owner the right, but not the obligation, to sell or call (buy) an asset at a price specified on the expiration date or before.

In the context of the purchase of bitcoins, an option could allow investors to cover themselves against potential losses by selling their parts at a higher price, then «put them back on the market if prices drop. However, it is not the same thing as the uncovered sale, which involves betting against the value of an asset, without really holding it.

Key differences between short reduction and purchase options

To illustrate key differences:

* SALE UNDERWANDS : bet the price of an asset, borrowing it to sell at a lower price.

* Purchase options : speculate on the future value of an asset or coverage against potential losses by selling it at a higher price.

In conclusion, although bitcoins can be sold briefly in theory, this approach is more commonly associated with purchase options and speculating on their value. There are alternative strategies available, such as purchase options, term contracts and other forms of coverage which can be more suitable for investors who wish to manage the risk or profit of market movements.

Important note

: Always find any investment strategy in detail before participating and consult a financial advisor if you are not sure of the adequacy of a particular approach.