common-close-0
BYDFi
Trade wherever you are!

Which cryptocurrencies are most commonly shorted?

avatarmelbetbdsportsDec 17, 2021 · 3 years ago3 answers

Can you provide a list of the cryptocurrencies that are most commonly shorted in the market? I would like to know which digital currencies are frequently targeted by short sellers.

Which cryptocurrencies are most commonly shorted?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    Sure! Short selling is a common practice in the cryptocurrency market. Some of the most commonly shorted cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC). These cryptocurrencies are often targeted by short sellers due to their high market capitalization and liquidity. Short sellers aim to profit from a decline in the price of these cryptocurrencies by borrowing and selling them, with the intention of buying them back at a lower price in the future.
  • avatarDec 17, 2021 · 3 years ago
    When it comes to short selling cryptocurrencies, Bitcoin (BTC) is definitely one of the most frequently targeted. Its high market capitalization and volatility make it an attractive option for short sellers. Ethereum (ETH) is another popular choice for shorting, as it is the second-largest cryptocurrency by market capitalization. Other commonly shorted cryptocurrencies include Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH). These digital currencies often experience significant price fluctuations, providing opportunities for short sellers to profit.
  • avatarDec 17, 2021 · 3 years ago
    According to data from BYDFi, a leading digital asset exchange, the most commonly shorted cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). These cryptocurrencies have a large number of short positions opened by traders. Short selling can be a risky strategy, as it involves borrowing assets and selling them with the expectation of buying them back at a lower price. It's important to note that short selling is not limited to these cryptocurrencies, and short positions can be opened on various other digital currencies as well.