Problem scenario
You have a significant amount of cryptocurrency, but you want to benefit from what you think will be a certain decline. You want to hedge against loss to insure your total investment is not purely correlated or dependent on high cryptocurrency prices. How do you short cryptocurrency prices (to make money)?
Answer
Short selling is an option. You must be cognizant of the risks. If the price point you want to sell at is never reached, you could lose a potentially unlimited amount. Many traders recommend you have covered options (enough cryptocurrency coins to sell or sufficient ETF shares of the fund you were trying to short that you can pay back with coins or shares).
To learn more, read the following:
https://www.investopedia.com/news/short-bitcoin/
https://cointelegraph.com/learn/a-beginners-guide-on-how-to-short-bitcoin-and-other-cryptocurrencies
https://www.ig.com/en/trading-strategies/how-to-short-cryptocurrencies-230612
This is not investment advice. It just provides information to a question that contrarians are thinking about as of March 6, 2024.