Shorting the DOGE or any crypto is a good strategy for investors who believe that Dogecoin will crash at some point in the future. It also means that you can benefit when Dogecoin falls.
Shorting or short selling is an investment strategy that involves you predicting a drop in the price of a digital asset. Shorting the falling prices of Dogecoin is a good strategy if you don’t have enough money to acquire the crypto and sell it for a profit.
Margin trading is riskier than buying crypto. Through this method, you can make more profit as the price of Dogecoin decreases. When you trade with leverage, your capital is used to cover the margin based on the extent of your leverage.
The most convenient way to short Dogecoin is through the Contract for Difference market. This frees you from the unnecessary headaches of dealing with the futures market.
Step 1: Open an account with a crypto exchange that supports shorting DOGE Step 2: Go to the Margin tab: This will allow you to open different charts and technical indicators and allows you to monitor all of the available markets. You will need to look for DOGE/USD to short Dogecoin. Step 3: Decide on the amount of Dogecoin and short
Don’t use too much leverage when shorting Dogecoin. You can leverage your bet up to 50 times your principal. If you have $100 to invest, you have the option to invest on a margin of up to $5000. Using too much leverage involves the risk of you getting liquidated and losing your money.
Ensure you choose an isolated position rather than a cross position. If you short Dogecoin and the coin’s value goes up (which is against your favour), a cross position means you will lose all your money in your future wallet. An isolated position means you will only lose the money you paid for that futures contract. Use this position before shorting crypto so that you don’t lose money.
Tip 1: Position size is vital Tip 2: Keep tabs on social media Tip 3: Learn to take profits