Short-selling is an investment method that allows investors to benefit from drops in prices and value of a particular asset, in this case Bitcoins.Short selling allows you to basically borrow an asset, such as Bitcoins, to sell  at current prices.Then, later on you can purchase the Bitcoins to pay back the person or organization you borrowed them from when selling the first time around.Hopefully when you go to repurchase the Bitcoins, prices will have dropped, so it will be cheaper to purchase the assets that need to be paid back.Let’s illustrate this with a short example: If you want to short sell Bitcoins, you will contact a trading agency or platform and place a short sell order.The agency will then sell the Bitcoins from their own supply, based on the assumption that in the future you will repay them with an equal number of Bitcoins.If you sell 10 Bitcoins, for example, you will eventually have to “cover” those 10 Bitcoins, whether prices rise or drop.If prices drop, it will be cheaper to rebuy these 10 Bitcoins.

If prices rise, it will be more expensive.When short-selling, the firm or individual who loaned Bitcoins to you can generally recall the assets at any given time and are required to give you only a short notice.So make sure you read any rules, regulations, or guidelines for “covering” any assets you short sell.With markets fluctuating at such a rapid rate, costs can swing wildly, putting you at risk.Short selling can be especially risky if the lender calls in the assets before prices have a chance to drop.Short selling is actually very common with stocks and most major trading platforms allow you to short stocks.Some Bitcoin trading platforms now allow you to short-sell Bitcoins (e.g.We should warn you, however, that short-selling any asset is a high risk venture.Normally, when you invest in an asset your losses are limited to the amount of money you have invested in that asset.For example, if you invest $10,000 dollars in a stock, and that stock suddenly collapses and become worthless, your losses will be limited to the $10,000 dollars you invested.

When short selling, however, your losses could extend far beyond your initial investment, something that is very important to consider, especially with Bitcoin.The easiest way to explain this is to use an example.bitcoin 11th march 2017Let’s say you short-sold $100 dollars worth of Bitcoin back when prices were only $10 dollars per coin.bitcoin mining using raspberry piThat means you short-sold 10 coins.ethereum value in euroLet’s assume that you have yet to repurchase the coins, meaning that you still have to pay the owner back with 10 Bitcoins.bitcoin difficulty riseAt current prices that would cost more than $12,000 dollars!bitcoin core change data directory

As you can see, short-selling any asset can be very risky.If you want to short sell Bitcoins or anything else, you need to be very careful.Only invest if you are very confident that prices will drop, and if you have money to cover your losses if investments rise.bitcoin ledger growthMake sure you watch prices closely and cut your losses if prices start to rise too quickly.bitcoin hvThat being said, if your intuition turns out to be correct and prices do drop, you could make a lot of money.bitcoin nasıl kullanılırIf you short-sold a single Bitcoin that’s currently selling for $1,200 dollars, for example, and prices collapsed back to $100 dollars, you’d make approximately $1,100 bucks, and that’s not a bad pay day at all!bitcoin miner usb test

What is a secured loan?A secured loan is a loan in which the borrower pledges something as collateral for the loan.An example of a secured loan is mortgage or a car loan.In our case, the borrower gives to the lender an amount of money to hold as collateral for the loan he or she receives in bitcoin.Why a secured loan is better than exchange?Bitcoin transactions are irreversible like cash.In contrast, credit card, debit card, and PayPal payments can all be reversed.To protect themselves from chargebacks, exchanges make clients wait for several days to get bitcoin, not allow credit card payments, set low limits on trades, or often, do all of the above.Secure lending solves this problem by giving bitcoin as a loan.There is no waiting period to get bitcoin, and borrowers can pay for the security deposit and fees with their favorite payment method.How does your peer-to-peer platform work?At xCoins, any user can be a borrower or a lender.When a borrower requests a bitcoin loan, the platform matches the borrower with a lender.

The process is automatic and seamless.No communication between the borrower and the lender is required.The borrower makes a payment directly to the lender on the lender’s PayPal payment page.After the payment is made, bitcoin is automatically transferred to the borrower’s wallet.How much does it cost?The interest fee for a loan is paid as a one-time payment together with the loan security deposit.The interest payment amount does not depend on the loan term.Lenders decide what interest rates to offer to borrowers.When you enter the loan amount and click “Get Bitcoin”, xCoins fetches the best offers matching the amount you requested.Out of all available offers, the system displays the one with the lowest interest fee.Because only one offer is displayed for each amount, lenders compete with each other to offer the lowest interest rates to you.In addition to the interest fee, the borrower also pays the loan origination and payment processing or bank transfer fees.How long does it take?The loan transaction is instant for return borrowers.

As soon as you make the payment for the security deposit and fees, you receive bitcoin in your xCoins wallet immediately.If you are a first-time borrower, please allow time for transaction approval.The approval time is usually a few minutes, but can be up to 3 hours, if entered during the hours of 8:00 am – 6:00 pm PST or up to 12 hours, if entered during the hours of 6:00 pm – 8:00 am PST.All subsequent transactions are instant.What payment methods do you accept?We accept all payment methods currently accepted by PayPal: Major credit cards: Visa, MasterCard, American Express, and Discover Debit cards Bank account (ACH) eCheck PayPal Credit PayPal Balance   Do I need a PayPal account to use your system?You do NOT need to have a PayPal account to use the system, if you are a borrower.We only accept lenders with verified PayPal accounts.You can pay without having an account or signing up for a PayPal account yourself.If PayPal asks you to create an account, please contact our support.