Looking to short Dogecoin? You can do so on ByBit!
The doggy-themed crypto craze may be coming to an end. Dogecoin is down well over 50% from its all-time high price of about $0.70 per coin. Today, DOGE is trading at a modest $0.24, but the crypto still holds a market capitalization of over $30 billion dollars.
This isn’t the 1st time Dogecoin has crashed. The meme cryptocurrency is known to pump and dump, and many speculate that Dogecoin “whales” (investors with huge amounts of Dogecoin) manipulate the market in this way.
As you can see from the Dogecoin/USD chart, DOGE has plummeted several times over. This chart shows Dogecoin’s price from 2017 through 2019 where the meme crypto lost most of its value.
What is Margin Trading?
Margin trading is inherently more risky than buying cryptocurrency outright, but it allows investors to short cryptocurrency, or bet against it. This way, you can make money as the price of a cryptocurrency like Dogecoin decreases.
When you trade with leverage, your capital is used to cover the margin based on your degree of leverage. For example, if you short Dogecoin with 10x leverage, then you’ll make a 100% return if DOGE dips 10% (currently around 2.5 cents). Conversely, if Dogecoin appreciates 10% the capital you put on margin will be liquidated.
ByBit allows traders to use leverage from 1x to 100x. The higher leverage you use, the more risk is involved. If you choose to lever your position 100x, then a 1% move will either liquidate your position or return 100%.
How To Short Dogecoin
The best place to short Dogecoin is on ByBit. ByBit has a mobile app on iOS, making it easy to manage volatile investments on the go. The platform allows you to leverage up on Dogecoin, Bitcoin, Ethereum, Uniswap and several other popular cryptocurrencies.
While the platform isn’t as intuitive as exchanges like Coinbase and eToro, the exchange hosts several unique features you can’t get on other platforms. In order to trade on ByBit, your IP address must be located outside of the U.S, as ByBit isn’t available for U.S customers just yet.
To make a trade, you’ll need to choose whether to long or short the crypto of your choice. Also, you’ll need to choose your leverage. While taking on high leverage can be enticing, it’s extremely risky and not recommended. Once you’ve entered your position, you’ll see your profits in real-time. You can choose to sell your position at any time, and you can manage your investments directly on the iOS application.
Pro Tip: Use ExpressVPN
A VPN lets you securely access the internet in an untraceable way. If you’re a cryptocurrency trader, you may want to remain anonymous or mask your IP address to another location. This way, if you’re located in the U.S, nobody will know! For trading, in particular, ExpressVPN is the best option on the market.
Not only can it automatically connect before you access the internet, but it offers lightning-fast speeds; something that’s needed to trade in the volatile cryptocurrency markets.