Cryptocurrency Q&A
Can you short on Coinbase?
Can you short on Coinbase?
Michele
Wed Dec 25 2024
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5 answers
915
I want to know if it's possible to short cryptocurrencies on the Coinbase platform. I'm interested in taking advantage of price movements in the crypto market by selling assets I don't actually own, with the intention of buying them back later at a lower price.
5 answers
BlockchainWizardGuard
Fri Dec 27 2024
Short selling involves selling a cryptocurrency that an investor does not own, with the intention of buying it back later at a lower price.
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Riccardo
Fri Dec 27 2024
This strategy is employed when investors anticipate a decrease in the price of a cryptocurrency.
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CherryBlossomFall
Fri Dec 27 2024
However, if the price of the cryptocurrency rises unexpectedly, short sellers may face financial pressure.
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SsangyongSpiritedStrengthCourage
Fri Dec 27 2024
Cryptocurrency investors have the opportunity to engage in short selling, which is a strategy also employed in the stock market.
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Davide
Fri Dec 27 2024
To mitigate this pressure, they may need to cover their short positions by buying back the cryptocurrency at a higher price, which could lead to a phenomenon known as a short squeeze.
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