Monday August 12, 2019

BSHORT – a new, safe way to short Bitcoin (plus two more shorting tools you should know about)

Most people in the crypto space are familiar with just one way to profit from trading Bitcoin: buying when the price is low and selling when it goes up again. However, there is another way: short-selling, or betting against BTC. It’s not so widespread yet, so now is a good time to get in on the action and learn about the best tools for shorting Bitcoin.

If you’ve seen the famous movie The Big Short, you’ll remember that Christian Bale’s character made hundreds of millions of dollars by shorting the stock market just before the 2008 financial crisis. But what does shorting mean, exactly? And how does the term apply to Bitcoin trading?

Shorting Bitcoin: your options

There are two main tools you can use to bet against Bitcoin:

– Futures: derivative contracts that oblige you to sell BTC at a specified lower price and on a predetermined date in the future

– Margin trading: you borrow BTC from a broker/exchange, using your deposit as collateral.

If these options are available, why aren’t more people short-selling Bitcoin?

Because the tools we’ve described are complex and very risky. If the price rises instead of falling, you stand to lose a lot of money. With futures, you are tied to a predetermined date, so you have to be very precise in your forecasting. With leverage trading, you first need to make a deposit in Bitcoin, and if the price goes against you, you’ll have to pay back several times your deposit.

Introducing BSHORT: a token for shorting Bitcoin

Decentracapital recently introduced a new cryptocurrency called Bitcoin Short (ticker: BSHORT). It works as an inverse derivative of the Bitcoin price: If BTC falls by 10%, BSHORT rises by 10%. Unlike futures, Bitcoin Short doesn’t have to be sold on a specific day. You can just relax and wait for the BTC price to decline.

Bitcoin Short is fully backed by Bitcoin derivatives – futures, swaps, and options – held by Decentra Capital. Since it’s a ERC20 token, it can be used to short BTC even on decentralized exchanges, which have lacked the tools for short-selling Bitcoin until now. BSHORT can be stored in any major Ethereum wallet or Metamask.

Decentracapital has just reached an agreement with the top-20 exchange Livecoin to list Bitcoin Short. The company is actively working on maximizing the token’s liquidity and keeping the spreads low, which will undoubtedly attract active traders. BSHORT is already being traded on ForkDelta, Bitcratic, and LedgerDex, with more listings on large exchanges planned for the upcoming months.

To learn more about Bitcoin Short or to purchase it using Metamask, visit