What is short in crypto selling?
In the world of cryptocurrency trading, could you explain in simple terms what "short selling" entails? I've heard this term used frequently but I'm still a bit hazy on the concept. Specifically, how does one go about short selling cryptocurrencies and what are the risks involved? Is it a common strategy among traders, and if so, what are some of the key factors they consider before initiating a short position? Understanding this concept seems crucial in developing a comprehensive trading strategy.
What is short selling in crypto?
Could you elaborate on the concept of short selling in the cryptocurrency market? I've heard about it but am not entirely clear on how it works. Specifically, I'm curious about how an investor would initiate a short position, what are the potential risks involved, and how profits or losses are realized from such a transaction. Furthermore, is short selling commonly practiced in the crypto sphere, and how does it differ from traditional financial markets? Your insights would be greatly appreciated.