What is Short-Selling ?
Short Selling in #cryptocurrency refers to a trading strategy that involves borrowing and selling cryptocurrency in the hope of repurchasing it at a lower price to make a profit. In this method, a trader borrows a specific amount of cryptocurrency from a lending platform or another #trader, sells it in the market, and then repurchases it at a lower price to return it to the lender and keep the difference as #profit.
The basic idea behind #short selling is to profit from a downward price trend in the market. For example, if a trader believes that the price of a certain cryptocurrency will decrease, they can short sell that #cryptocurrency by borrowing and selling it in the market. If the price indeed falls, the trader can repurchase the cryptocurrency at a lower price, return it to the lender, and keep the #profit.
#Short selling in cryptocurrency is a high-risk and high-reward strategy, as the potential profits from short selling can be substantial, but the losses can be equally significant. The market for cryptocurrency can be highly #volatile, and prices can move rapidly in either direction, which can make short selling a challenging and speculative activity.
Note : Short Selling is not suitable for everyone, and traders should have a thorough understanding of the risks involved before attempting this type of trading strategy. Traders should also be familiar with the platform they are using for short selling, its lending policies, and the terms and conditions of borrowing cryptocurrency.
Short Selling in #cryptocurrency refers to a trading strategy that involves borrowing and selling cryptocurrency in the hope of repurchasing it at a lower price to make a profit. In this method, a trader borrows a specific amount of cryptocurrency from a lending platform or another #trader, sells it in the market, and then repurchases it at a lower price to return it to the lender and keep the difference as #profit.
The basic idea behind #short selling is to profit from a downward price trend in the market. For example, if a trader believes that the price of a certain cryptocurrency will decrease, they can short sell that #cryptocurrency by borrowing and selling it in the market. If the price indeed falls, the trader can repurchase the cryptocurrency at a lower price, return it to the lender, and keep the #profit.
#Short selling in cryptocurrency is a high-risk and high-reward strategy, as the potential profits from short selling can be substantial, but the losses can be equally significant. The market for cryptocurrency can be highly #volatile, and prices can move rapidly in either direction, which can make short selling a challenging and speculative activity.
Note : Short Selling is not suitable for everyone, and traders should have a thorough understanding of the risks involved before attempting this type of trading strategy. Traders should also be familiar with the platform they are using for short selling, its lending policies, and the terms and conditions of borrowing cryptocurrency.
What Is Triangular Arbitrage and How to Use It?
#Arbitrage is a trading approach that turns market inefficiencies into financial opportunities. There are several types of arbitrage strategies used by crypto traders, including simple arbitrage, cross-border arbitrage, peer-to-peer (P2P) arbitrage, and triangular arbitrage, all of these seek to take advantage of price differences across multiple markets.
Triangular Arbitrage takes advantage of price #difference between three different coins in the market.
The #concept is simple —> A trader exchanges one #crypto asset for a second, the second for a third, and the third for the first, by which that difference in price gives him #profit and then this is repeated for as long as the price differences remain.
To be done #successfully, triangular arbitrage requires identifying price differences, trading different asset pairs simultaneously, and proper #risk management. Since the crypto market is #volatile, prices fluctuate quickly; traders must also execute #triangular arbitrage trades rapidly.
However, Some people build there own #Trading Bots to catch this difference, as price is moving very fast and that the point, which make Arbitrage Trading Risky.
#Arbitrage is a trading approach that turns market inefficiencies into financial opportunities. There are several types of arbitrage strategies used by crypto traders, including simple arbitrage, cross-border arbitrage, peer-to-peer (P2P) arbitrage, and triangular arbitrage, all of these seek to take advantage of price differences across multiple markets.
Triangular Arbitrage takes advantage of price #difference between three different coins in the market.
The #concept is simple —> A trader exchanges one #crypto asset for a second, the second for a third, and the third for the first, by which that difference in price gives him #profit and then this is repeated for as long as the price differences remain.
To be done #successfully, triangular arbitrage requires identifying price differences, trading different asset pairs simultaneously, and proper #risk management. Since the crypto market is #volatile, prices fluctuate quickly; traders must also execute #triangular arbitrage trades rapidly.
However, Some people build there own #Trading Bots to catch this difference, as price is moving very fast and that the point, which make Arbitrage Trading Risky.
What is (#NRPL) Net Realized Profit/Loss ?
(#NURL) Net Realized Profit/Loss metric presenting the net magnitude of #profit, or loss realized by all holders spending #coins. Realized Profit/Loss is assessed relative to the price when a #coin last moved. In other words, it is the #difference between the selling price of the #investment and its #original cost basis, including any transaction #costs and taxes that were incurred in the process.
#Positive values (Above 0) indicate #profits are being realized, where price #continues to trend higher and #Negative values (below 0) indicate losses are being realized on-chain. Where price continues to trend #lower.
(#NURL) Net Realized Profit/Loss metric presenting the net magnitude of #profit, or loss realized by all holders spending #coins. Realized Profit/Loss is assessed relative to the price when a #coin last moved. In other words, it is the #difference between the selling price of the #investment and its #original cost basis, including any transaction #costs and taxes that were incurred in the process.
#Positive values (Above 0) indicate #profits are being realized, where price #continues to trend higher and #Negative values (below 0) indicate losses are being realized on-chain. Where price continues to trend #lower.
What's is #NUPL (Net Unrealized Profit/Loss) ?
NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss. Net Unrealized Profit and Loss (#NUPL) is the difference between market cap and realized cap divided by market cap.
Assuming that the latest #coin movement is the result of a purchase, #NUPL indicates the total amount of profit/loss in all the coins represented as a ratio.
It could be interpreted as the #ratio of investors who are in profit.
Values over '0' indicate investors are in #profit and an increasing trend in value means more #investors are beginning to be in #profit.
This phase indicates the increasing reason to take #profit which leads to an increase in sell pressure.
NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss. Net Unrealized Profit and Loss (#NUPL) is the difference between market cap and realized cap divided by market cap.
Assuming that the latest #coin movement is the result of a purchase, #NUPL indicates the total amount of profit/loss in all the coins represented as a ratio.
It could be interpreted as the #ratio of investors who are in profit.
Values over '0' indicate investors are in #profit and an increasing trend in value means more #investors are beginning to be in #profit.
This phase indicates the increasing reason to take #profit which leads to an increase in sell pressure.
What's is #NUPL (Net Unrealized Profit/Loss) ?
NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss. Net Unrealized Profit and Loss (#NUPL) is the difference between market cap and realized cap divided by market cap.
Assuming that the latest #coin movement is the result of a purchase, #NUPL indicates the total amount of profit/loss in all the coins represented as a ratio.
It could be interpreted as the #ratio of investors who are in profit.
To make it Simpler for you, Any Values over '0' indicate investors are in #profit and an increasing trend in value means more #investors are beginning to be in #profit.
This phase indicates the increasing reason to take #profit which leads to an increase in sell pressure.
NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss. Net Unrealized Profit and Loss (#NUPL) is the difference between market cap and realized cap divided by market cap.
Assuming that the latest #coin movement is the result of a purchase, #NUPL indicates the total amount of profit/loss in all the coins represented as a ratio.
It could be interpreted as the #ratio of investors who are in profit.
To make it Simpler for you, Any Values over '0' indicate investors are in #profit and an increasing trend in value means more #investors are beginning to be in #profit.
This phase indicates the increasing reason to take #profit which leads to an increase in sell pressure.
This Chart Shows the #Profit or #Loss Bias (dominance) of #STH volumes flowing into exchanges. We can see a steady decline in profit dominance as the 2023 rally progressed, as more #STHs acquired coins with an increasingly elevated cost basis.
This week we saw the largest loss dominance reading since the #March sell-off to $19,800. This suggests that the STH cohort are both largely underwater on their holdings, and increasingly price sensitive.
This week we saw the largest loss dominance reading since the #March sell-off to $19,800. This suggests that the STH cohort are both largely underwater on their holdings, and increasingly price sensitive.
What's is #NUPL (Net Unrealized Profit/Loss) ?
NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss. Net Unrealized Profit and Loss (#NUPL) is the difference between market cap and realized cap divided by market cap.
Assuming that the latest #coin movement is the result of a purchase, #NUPL indicates the total amount of profit/loss in all the coins represented as a ratio.
It could be interpreted as the #ratio of investors who are in profit.
To make it Simpler for you, Any Values over '0' indicate investors are in #profit and an increasing trend in value means more #investors are beginning to be in #profit.
This phase indicates the increasing reason to take #profit which leads to an increase in sell pressure.
NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss. Net Unrealized Profit and Loss (#NUPL) is the difference between market cap and realized cap divided by market cap.
Assuming that the latest #coin movement is the result of a purchase, #NUPL indicates the total amount of profit/loss in all the coins represented as a ratio.
It could be interpreted as the #ratio of investors who are in profit.
To make it Simpler for you, Any Values over '0' indicate investors are in #profit and an increasing trend in value means more #investors are beginning to be in #profit.
This phase indicates the increasing reason to take #profit which leads to an increase in sell pressure.
What's is #NUPL (Net Unrealized Profit/Loss) ?
NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss. Net Unrealized Profit and Loss (#NUPL) is the difference between market cap and realized cap divided by market cap.
Assuming that the latest #coin movement is the result of a purchase, #NUPL indicates the total amount of profit/loss in all the coins represented as a ratio.
It could be interpreted as the #ratio of investors who are in profit.
To make it Simpler for you, Any Values over '0' indicate investors are in #profit and an increasing trend in value means more #investors are beginning to be in #profit.
This phase indicates the increasing reason to take #profit which leads to an increase in sell pressure.
NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss. Net Unrealized Profit and Loss (#NUPL) is the difference between market cap and realized cap divided by market cap.
Assuming that the latest #coin movement is the result of a purchase, #NUPL indicates the total amount of profit/loss in all the coins represented as a ratio.
It could be interpreted as the #ratio of investors who are in profit.
To make it Simpler for you, Any Values over '0' indicate investors are in #profit and an increasing trend in value means more #investors are beginning to be in #profit.
This phase indicates the increasing reason to take #profit which leads to an increase in sell pressure.