If you have a few USD on an exchange, you may wonder how to get more. The usual way is to invest in cryptos in which you believe. Another way is to short the cryptos of which the price might decrease.
There are several ways to short a crypto. For instance, to short Bitcoin (BTC), you can borrow it on a lending protocol like Aave on Ethereum blockchain, immediately sell it, and buy it again later at a lower price if it has decreased as you expected.
Another way is to buy the short version of some cryptos on centralized exchanges like Binance or KuCoin.
For instance, you can buy SAND3S on KuCoin which increases by 3% when The Sandbox (SAND) price decreases by 1%.
Why should I short SAND?
First of all, because the price has increased for a few days and has just started to decrease:
But the main reason is more fundamental: SAND is inflationary, only 56% of the max supply is circulating, the remaining 44% will progressively be unlocked, and 12% of the total supply will be unlocked in only 25 days. You can see below the vesting schedule:
This vesting schedule would not be an issue if The Sandbox was really successful as an application. However, according to the number of daily transactions that you can find on dappradar, this is not the case:
That's why I think SAND price might decrease in the next few days, although it is not 100% sure. Therefore, my strategy is to buy SAND3S on KuCoin in order to bet on this decrease. In the worst case, if SAND pumps, most cryptos will pump too and my losses on SAND3S will be more than compensated by my long positions which are bigger than my shorts.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
