Of course I like it too. Let me explain the logic behind why many people like to short sell.
1. If your short position is liquidated and the price goes up, what will you do next?
Once the opportunity is gone, you will short again in revenge.
2. Under the same liquidity environment, it is easier for a coin to rise than to fall. Human nature is bullish or likes to buy at the bottom, so it is easier for a coin to rise 30% per day than to fall 30% per day.
3. If you fail in going long, then the price will fall. In this market, the lower the price falls, the more opportunities you have and the cheaper the chips are. Combined with the second point, rising is easier than falling, so when the price falls, you will have more opportunities.
4. Many people feel very uncomfortable when their short positions are liquidated, but they feel better when their long positions are liquidated. Many people have this mentality: I would rather be liquidated when I am long than not bring the price down.
5. Short selling can result in unlimited losses, while long selling can result in a maximum loss of 100%.
1-2 increased by 100%, 2-1 only decreased by 50%,
Going long always makes more money than going short! And the risk is small.
6. Earn profits: Short selling can earn profits when the price of digital currency falls. If investors believe that the price of a certain digital currency will fall, they can short sell to obtain the profit opportunities brought by this downward trend.
7. Risk Management: Short selling can also help investors reduce risk when the price of digital currency falls. When the price falls, short selling can help investors avoid losses.
8. Hedging: Short selling can be used to hedge other positions in the portfolio. Doing so can protect the entire portfolio when market risks rise.
9. Covering a position: Some investors will choose to short sell when the price of a digital currency falls, so that they can get more digital currency when the price falls, thereby reducing their average holding cost.
