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How to short Bitcoin on Binance? Compare with shorting on BitMEX.

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Are you seeking out answers on how to short Bitcoin on Binance and BitMEX? If you are a beginner that wishes to get into crypto trading, then this guide is for you. We go into great detail about what shorting Bitcoin really is, how to do it, and what types of contracts are available to you right now. The guide explains what is Bitcoin short interest and short squeeze, as well as whether you can short futures.

However, the biggest contributions of this article are step-by-step guides on how to short Bitcoin on Binance and BitMEX. Keep reading to get the latest info on these two platforms and know-how to easily earn quick profits.

Property Binance BitMEX
Regions
Global (U.S. excluded)
Global (U.S. excluded)
Trade Fees
0.012% – 0.10%
(-0.05%) – 0.25%
Bitcoin Pairs
Over 100 of them
USD only
Futures Contracts
Yes
Yes
Verification
Optional
No
Deposit Fees
Free
Free
Fiat Trading
Yes
No
Altcoins
Over 100
ETH, ADA, EOS, and 4 more
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What is Shorting Bitcoin?

Are you seeking out answers on how to short Bitcoin on Binance and BitMEX? If you are a beginner that wishes to get into crypto trading, then this guide is for you. We go into great detail about what shorting Bitcoin really is, how to do it, and what types of contracts are available to you right now. The guide explains what is Bitcoin short interest and short squeeze, as well as whether you can short futures.

However, the biggest contributions of this article are step-by-step guides on how to short Bitcoin on Binance and BitMEX. Keep reading to get latest info on these two platforms and know-how to easily earn quick profits. For full platform reviews, check Binance review or BitMEX review.

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Can I Earn Good Profits from Shorting Bitcoin?

Now that you know what shorting is, is there a way to earn good profits from shorting bitcoin? What about when price fluctuations are quite small? There is a function called leverage that allows you to borrow funds from the platform.

It powers up your order without investing more than what is in your balance. You earn more exponentially depending on how much assets you wish to leverage. However, keep in mind that losses are equally bigger if your market analyses misfire.

How to Short Bitcoin on Binance?

Now we get to the juicy part – we will show you how to short Bitcoin on Binance and earn profits. Here are steps you need to take to make it happen:

Step 1: Create an account. Easy enough and takes about 10 minutes total to do. Provide your email and password and put on two-factor authentication (2FA).

Step 2: Analyze the market through charts and indicators. For crypto beginners, we recommend the “Basic Exchange” window, as it is easier to navigate through. Binance charts offer tools that can help you determine price trends. As seen from snapshot below, you have abundance of indicators to choose from if you open up TradingView option (indicated by green square).

How to short Bitcoin on Binance and BitMEX abundance of indicators on trading view

Moving average (MA) would open up automatically, an indicator that everyone, crypto beginners included, should use. As for the price, you are looking for a downturn trend, when the price is about to go down. The price decline is shown through red bars. We recommend looking into past week to locate price drops to predict when would be the next big drop.

Step 3: Create a Short Order. Now, choose a BTC pair and create an order. You do so by first checking out the right-hand side of the window, as indicated by the green square in the picture below.

How to create a short order with Binance

Once you a pair down, you proceed by filling out an order. This is located in the middle of the page, as seen from our snapshot below. Note that in our example, we are using exchange form, where you fill out how big the order and release it to the market. You click “Sell BTC” and continue to the other step.

How to create a short order with Binance sell BTC

 

However, if you want to use leverage function (up to 20x) “Futures” would be the option for you. However, using the leverage rate is quite risky, as you can lose as much as you can gain by borrowing additional funds from other participants.

Step 4: Watch Market Behavior. Since we are shorting Bitcoin, price growths would mean a loss for you. Thus, keep an eye on the market and how it behaves. We would recommend setting a stop-loss function to either limit your losses if bull run occurs or to close the position if price falls down sufficiently enough. In any case, your active participation and vigilance is of utmost importance.

Step 5: Close the Order. Once you see BTC price dropped hard enough compared to a paired coin, you click “Close order” to get it out of the market. You do so by clicking “Close Order” that is located in the space shown below.

How to create a short order with Binance close order

Take into account Binance fees if you are not using BNB (Binance coins) as they take away a portion of your profits. They range from 0.012% to 0.10%, depending on volume of the order and the verification tier you have achieved.

Step 6: Do it all over again.

How to Short Bitcoin on BitMEX?

Apart from Binance, you can also short Bitcoin on BitMEX as well. The platform is crypto-to-crypto trade only but has many advantages of its own. Here are steps you should take to start shorting Bitcoin on BitMEX.

Step 1: Register an account. It is quite easy and lasts about 5 minutes. It requires an email address and password. Be sure to implement 2FA with Google authenticator.

Step 2: Analyze the market first. With that out of the way, it is time to set up your analysis straight. On the right side of the screen, there is a BitMEX chart that can be of great help. As indicated in screenshot below, you can enlarge the chart (green square) and put in indicators (yellow square) to help you determine the trend.

How to create a short order with BitMEX analyze the market

As seen in the below chart, there are many indicators to choose from. For beginners, we suggest Moving Average” as it indicates where general price trend is heading to. You are looking a generalized downturn or when price reaches a peak and is about to fall down.

How to create a short order with BitMEX moving average indicator

Step 3: Create a Short Order. Once you have nailed down the time you want to start shorting Bitcoin, you can open up an order. At BitMEX, it is located on the left-hand side, as indicated on the snapshot below.

How to create a short order with BitMEX create a short order

You start by putting the number of bitcoins you wish to short and at what value (yellow circle). Quantity the volume you wish to trade with. Green square will show you the fee structure. Costs vary from -0.05% (reimbursements) to 0.25%, depending on market conditions. Take these into account when calculating your planned profits and the price level you wish to close the contract.

Lastly, you simply click the “Sell / Short” button and voila! Your order is live.

Step 3a (Optional): Use Leverage. If you wish to earn more from Bitcoin shorting, you can use leverage rates, indicated with a red square. Please note that BitMEX allows 100x rate as maximum amount for leverage. The maximum level is quite powerful and as such, sets liquidation price quite close to your starting value.

It means that should BTC price go up instead of down in value and surpass the liquidation threshold, your order would close and wipe out your balance. Starting with a 10x or smaller rate would be the best for beginners.

Step 4: Watch until BTC Price reaches the desired value. This step is perhaps the most agonizing one, as you sit and wait until price reaches the level you have set. We recommend putting a stop function that would close the order automatically.

You can put stop-order either to limit losses or to close the order once BTC value reached desired level. It would close the order for you, so you can be free from constantly looking at charts.

Step 5: Final step – Close the Order and Analyze. Once the ROE is at the acceptable level, it is time to close the order and earn profits. You do so by clicking the “Close Order” button that would be located in the space indicated by a yellow square in snapshot below.

How to create a short order with BitMEX close order and analyze

We highly recommend analyzing the period within which your order was live. It will help you understand what drives the market and at what times should you open a new short order.

Step 6: Rinse and Repeat.

What is Bitcoin Short Interest?

As you go by crypto trading, few terms like Bitcoin short interest are important to understand. Short interest is the number of short orders released to the market. It helps you determine how many people are shorting Bitcoin. If a lot of traders do it, there is a good chance that BCT price will go down fairly soon.

In the case of Binance, you can check them out on the left side of the trade window, indicated by the green square.

What is short interest with Binance

BitMEX also provides data on the latest short trades. You can check them out in the snapshot below, indicated by the red font.

What is short interest with BitMEX

What is a Bitcoin Short Squeeze?

Bitcoin short squeeze is a situation in which BTC price starts to go up drastically. It is a time when short orders incur losses and traders are trying to close their positions. In most cases, you will be forced to incur a loss, since these jumps are rarely stable. To hedge against such price movements, always leave stop-loss function, indicating the price level at which you will incur an acceptable loss.

Can You Short Bitcoin Futures?

It is quite possible to short Bitcoin futures at both Binance and BitMEX. Bitcoin futures are contracts at which you indicate the future price of the coin at a specific time. You do so by putting a future price (that you got from thorough analysis) while creating an order. Then, you put stop function and wait until a specific amount of time passes by.

However, you should account for the risk that price may not move in the direction you want. If that happens, you incur losses.

What are the Risks with Shorting Bitcoin?

As a conclusion, we do need to stress that risks with shorting Bitcoin should not be ignored. You are betting that BTC’s price will drop in the future. However, trends may not go as planned for various reasons. Here are risks you should look after while shorting Bitcoin:

  • Bitcoin price growth forces losses on your account
  • Sharp price spikes can trigger liquidation function
  • If the price is stable, rollover fees can kill your profitability rate
  • Using high leverage rate means liquidation price rate would be too close to the price you have begun with

Your capital is always at risk when trading

Read more about our platforms in our reviews, such as our Binance review, BitMEX review eToro review.

The post How to short Bitcoin on Binance? Compare with shorting on BitMEX. appeared first on Cryptocointrade.

Source: https://www.cryptocointrade.com/crypto-trading-blog/how-to-short-bitcoin/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-short-bitcoin

Blockchain

Bitcoin Cash long-term Price Analysis: 24 September

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Following Bitcoin’s footsteps, many of the market’s altcoins noted a slump in their price when the week began. The case for Bitcoin Cash was the same, with the coin falling on the charts by over 10 percent on 21 September. Since then, BCH has registered lower lows and lower highs and the coming week is likely to settle the direction in which Bitcoin Cash’s price will move.

At press time, Bitcoin Cash was being traded at $212 with a market cap of $3.9 billion. Over the course of the past 24-hours, BCH was observed to have registered a minor drop of 0.7 percent, after having noted a trading volume of $1.3 billion.

Bitcoin Cash 4-hour chart

Source: BCH/USD, TradingView

According to the 4-hour chart for Bitcoin Cash, the coin’s price action has been part of a descending channel formation and in the coming week, the price may continue to remain within the formation. However, it might also register a breakout, one which is traditionally likely to be northbound.

At press time, BCH was very close to testing the support at $211, and if the coin were to endure even more bearish pressure, the cryptocurrency may need the help of its second support level at $204. However, if the breakout does happen in the coming week, then BCH may head towards the resistance level at $221.

Source: BCH/USD, TradingView

As per the cryptocurrency’s technical indicators, it is likely that BCH may try to move out of the descending channel formation in the coming week. The MACD indicator had just undergone a bullish crossover, with the MACD line inching past the Signal line. The RSI, on the other hand, seemed to be moving away from the neutral zone and back into the oversold zone.

Source: CoinMetrics

In sync with the market’s altcoins, the correlation with Bitcoin remained strong for BCH and can be considered to be the reason behind the previous week’s fall. Over the past year, the BCH-BTC correlation has risen from 0.72 to 0.81, making BCH extremely likely to dance to Bitcoin’s tune.

Conclusion

Bitcoin Cash has been confined within the descending channel formation and over the coming week, provided there is significant bullish pressure, it will make an attempt to break out of the price formation. In such a case, its immediate resistance at $221 will be its likely target. However, if the cryptocurrency’s price continues to exist within the formation, then a dip towards the second support level at $204 cannot be ruled out.

Source: https://eng.ambcrypto.com/bitcoin-cash-long-term-price-analysis-24-september

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Startup Aleo Wants to Help You Use the Internet Without Sacrificing Data Privacy

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Privacy tech company Aleo has launched a data privacy-oriented blockchain and developer kit to make writing zero-knowledge proofs in web applications easy and scalable.

The startup is releasing its first round of software tools to let developers write private applications for the web using a new programming language called Leo, as well as integrate these tools into pre-existing browsers’ functions. 

“I think it’s become very clear that the internet is broken,” said Aleo co-founder Howard Wu on a phone call. “As users of the internet, we give up our personal data in exchange for services from providers. This model is really outdated. It’s an antiquated one. For us, the goal is to provide a new type of model where this incentive can be aligned for both sides.”

Zero-knowledge proofs

Aleo leverages zero-knowledge proofs (ZKPs), a cryptographic technique that allows two parties on the internet, such as an app and a user, to verify information with each other without sharing the underlying data related to this information.

If you think about it in the context of logging into a website for example, it would verify who you are without sharing info such as your password, geolocation data or other information that can be used to suss out additional details about yourself that you aren’t aware you might be giving up.

See also: Zcash’s Halo Breakthrough Is a Big Deal – Not Just For Cryptocurrencies

“The idea is that we can provide user interface (UI) components and frameworks that look just like traditional web applications,” said Wu. “But when you click on something, it does some magic under the hood, and makes executing ZKPs much easier, happening within your browser. We will provide a UI toolkit, a UI framework that lets web developers build it into existing web applications.”

Aleo’s development toolkit

Aleo’s initial release is made up of four different components. 

There is the Aleo Studio, the first integrated development environment (IDE) for writing privacy-focused, zero-knowledge applications. An IDE is a holistic environment for developers to write computer programs. 

The Aleo Package Manager is focused on letting developers manage and store data packages. Integrated with Aleo Studio, the package manager makes it easier for developers to organize and share their work. 

SnarkOS is Aleo’s decentralized operating system for private web applications and the first implementation of the Aleo protocol.

“It runs a blockchain and it supports all sorts of applications,” said Wu. “So it’s very similar to ones that people know and love on Ethereum. The idea for us is to use snarkOS as the foundation or the backbone of this entire system. So snarkOS is meant to checkpoint, verify and store data in state.”

See also: Privacy Startup Nym Will Pay You in Bitcoin to Run Its Mixnet

As users interact with the web, they’re making transactions such as payments, inputting their data, or interacting with games through applications, all of which involve state transitions, or the ways that data moves throughout the internet. Private app integrations with Aleo can address all of these phases, meaning the data privacy functionality isn’t negated at any one point. 

The last part of Aleo’s developer kit is the “Aleo Testnet I,” a testnet on snarkOS that allows developers to write and deploy applications. 

Developers must build programs on the Aleo blockchain to use the kit, as Aleo is the foundation for everything else developers want to build and integrate with. The focus is on establishing a strong and private core, so that users are able to choose whether they want their data to be public or not. 

The whole goal, however, is for developers to integrate existing apps with Aleo. Existing applications will be able to integrate on Aleo using normal web paradigms. 

“Our goal isn’t to disrupt the web, it’s to integrate with it.” said Wu. “Aleo will host infrastructure and services to make it easy for web applications to use Aleo.”

Leo: programming privacy with a new language

The company has also created a new programming language called “Leo.” Wu explained that while Leo looks and feels like JavaScript, under the hood, it is uniquely able to abstract low-level cryptographic concepts, so developers can build private applications without a degree in cryptography. 

“We built Leo to make it easy to write private applications,” said Wu. “For crypto-natives, Leo allows developers to build applications like dark pools, anonymous mixers, private marketplaces – you name it.”

He added, for web developers, Leo provides a framework that allows developers to build secure components for applications like password-less login, instant checkouts and more. 

Addressing shifting attitudes around data privacy

According to a recent report from AI-powered fraud detection company Sift, if a company inadvertently exposes a customer’s data, whether it’s the companies fault or not, 56% of survey respondents said they’d stop using the site altogether. 

“The idea here is to provide an ecosystem that is robust enough to give you alternative options and I think that’s a model that’s far more far more cohesive for both companies and consumers,” said Wu. 

Right now, according to Wu, Aleo’s goal is to plant a seed and get as much feedback as they can before they launch their mainnet. 

“Many of the common L1 foundations have tried Aleo Studio and Leo in private,” said Wu. “We have been using the opportunity to architect requirements to integrate. After all, many blockchains would like a shielded pool for applications on their chain.”

See also: These Illicit SIM Cards Are Making Hacks Like Twitter’s Easier

Disclosure

Source: https://www.coindesk.com/aleo-internet-data-privacy-zero-knowledge-proofs

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New Loom Network CEO clarifies concerning information published by former employee

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One of Loom Network’s former employees recently leaked information about the company’s Kickstarter-funded game, Relentless (also called Zombie Battleground). The leak alleged that the project, and potentially the entire Loom Network, were no longer actively being developed. The former employee, who has not worked for the company in over a year, claimed that the issues largely stemmed from Loom’s former CEO, Matthew Campbell. Campbell left Loom in Feb. 2020, and was replaced by a new CEO.

“Dilanka accessed our Kickstarter account without authorization and sent out that rambling update,” Vadim Macagon, the current CEO of Loom Network, told Cointelegraph on Sept. 24. “He was let go almost a year ago because he started behaving erratically, and was quite open to some of his team about his drug use (and not just the drugs he mentioned in the update he just published).”

Dilanka’s claims

A Sept. 24 tweet from tech expert Bruno Skvorc notified the public of an email sent out to backers of the Relentless project. Cointelegraph reached out to Skvorc for further details, and received a link to the email in question. The email came from “Dilanka,” who worked in the project’s growth and marketing department. 

Dilanka asserted that both projects were dead, “or at the very least, currently on life support in the middle of an unpleasant pivot focused on healthcare.” 

Loom conducted its initial coin offering, or ICO, in 2018. On May 9, 2020, rumors circulated about Loom’s potential demise, as evidenced by a lack of communication from the project on various channels. Loom responded to the article through Twitter, asserting the company was still very much alive, but wading through a transition into government and healthcare-based enterprise blockchain work. According to Dilanka, the company has not come forward with any new developments since May 26. Loom’s Twitter account, however, uploaded a number of tweets since that time, including a roadmap for the year which was posted on June 30.

Relentless’ downfall, and Loom Network’s alleged failure as a whole, resulted from “lack of product market fit, mismanagement of resources, incompetent leadership from the founders, and a lack of appreciation and transparency toward you, the community who entrusted us with you hard earned money,” Dilanka said, giving his opinion on the situation. 

“I (along with many of our former team) was let go almost a year ago, and the fact that I still have access to this Kickstarter account (which I clearly shouldn’t) is another good example of the incompetence I am talking about.”

Dilanka, who somehow maintained access to the Kickstarter account associated with the game, said he has received notice of incoming questions about Relentless over the past year from backers looking for updates. 

Dilanka went on to cite a number of issues around the Loom Network, including a lack of communication, as well as questionable actions from former Loom CEO Matthew Campbell.

One example includes Campbell allegedly terminating development on Relentless in 2019, without telling funders, as well as making sure the news did not surface publicly. Loom Network reportedly put more than $1.5 million into building Relentless. 

Dilanka, however, provided a disclaimer:

“I don’t know what kind of pressure he [Campbell] was under by investors or what his story is as this is purely my own opinion based on my limited, one dimensional interactions with him as a ‘team member’ of Loom via Slack. In fact, take all of what I say with a grain of salt — I could be 100% wrong about everything. Do your own due diligence and make up your own mind. But yes, had I not worked remotely and Matt was within proximity, I would have happily punched him in his very punchable face to soften his keyboard warrior tendencies in the interest of teaching him some manners… and yes, I made sure to tell Matt (and Luke et al.) [other Loom brass] how I felt about him when things started to go south.”

Macagon’s explanation

Loom Network’s current CEO, Macagon, provided insights from the other side of the table. “I’m not going to comment on the outright slander against Matthew Campbell, instead, I’ll focus on the facts,” he said. “Dilanka didn’t lie about the fact that Loom spent more than $1.5 million USD on the game, after all, it was part of our core thesis during the first stage of our startup.” Macagon explained the Kickstarter funding resulted in less than $300,000.

The company put the aforementioned $1.5 million toward constructing “a playable real time game running fully on chain with its own APIs and block explorers,” Macagon said. Relentless boasted an entire experience built on blockchain. More than $200,000 of the $1.5 million was used for marketing — the department in which Dilanka worked. 

“We didn’t sell any cards over a few dollars, host any NFT auctions, nor engage in any crypto style fundraising,” Macagon said. Relentless stood as the result of significant time and effort by the team, in part evident in the project’s Github activity. Public appreciation, involvement and popularity never caught on, however, the CEO explained. He said that despite the team trying all conceivable approaches, success proved elusive, spurring the company in a different direction while leaving the game behind.

“I understand that drama is always interesting, but compared to most of the drama in the crypto space, ZombieBattleground is just a normal startup failure,” Macagon said, adding:

“I can understand Dilanka’s frustration to a certain extent, though I don’t understand the state of mind that led him to access our Kickstarter account without authorization, and then publicly admit to breaking contracts and potentially laws. Dilanka is no whistle-blower, he’s just high on something.”

Source: https://cointelegraph.com/news/new-loom-network-ceo-clarifies-concerning-information-published-by-former-employee

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