What does short selling mean?

Short selling, also known as "short selling", is an investment strategy that consists of selling an asset that you do not own, with the aim of profiting from its fall in price:

The investor hopes that the price of the asset will fall, so that he can buy it later at a lower price and close the transaction with a profit.

The position of the investor who makes a short sale is called being "short" or "sold".

The investor can temporarily rent the share, with the intention of making a profit at a later date, and then return the asset to its owner.

Short selling is a way of speculating in the market and can be applied to longer time frames or in day trading operations.

To short sell cryptocurrencies, it is important to:

Research the market and cryptocurrencies to identify potential shorting opportunities.

Monitor the position and consider adopting risk management strategies, such as setting stop-loss and take-profit levels.

Consider that the price may increase instead of the expected decline, leading to potential losses.

Source: Google.com