Bitcoin, the world’s first and most well-known cryptocurrency, has experienced significant volatility since its inception. While many investors see the value and potential in Bitcoin, others believe that it is overvalued and expect its price to decrease in the future. This is where short selling comes in.
Short selling, also known as “shorting,” allows investors to profit from a decrease in an asset’s price. In the case of Bitcoin, shorting involves borrowing the cryptocurrency from a broker and then selling it at the current market price. If the price of Bitcoin goes down as expected, the investor can buy it back at a lower price, return it to the broker, and pocket the difference.
Rodinhood, a popular trading platform, has recently added the ability to short Bitcoin to its list of features. This has opened up new opportunities for investors who want to take advantage of Bitcoin’s potential decline. However, shorting Bitcoin on Robinhood is not as straightforward as buying and selling it on the platform. There are certain steps that need to be followed to short Bitcoin effectively.
Firstly, it’s important to note that short selling is only available to users with a Robinhood Gold subscription. This subscription costs $5 per month and provides access to additional features, including the ability to trade on margin. Once you have a Robinhood Gold account, you can proceed with short selling Bitcoin.