As a reminder, my Short Portfolio is not about the cryptos I have bought, but about the cryptos I have shorted.
What does it mean to short a crypto?
Shorting a crypto means to borrow and sell a crypto, with the expectation that the price will decrease. The goal is to buy back the same amount of the crypto at a lower price, repay the borrowed funds, and keep the difference as profit. It is a way for traders to make money on a falling market. However, shorting a crypto also carries a high level of risk, as there is the potential for unlimited losses if the market moves against the trader.
Which cryptos do I currently short?
As I am generally bullish on crypto market, my Short Portfolio is only worth a few USD through KuCoin short tokens like MANA3S.
Furthermore, I would never short top coins like Bitcoin (BTC) or Ethereum (ETH) since I believe in their long term potential.
The tokens I currently short are Cardano (ADA), The Sandbox (SAND), and Decentraland (MANA), on which I will focus today.
Why do I short Decentraland (MANA)?
The main reason is the bankruptcy of Genesis which will likely have an impact on MANA:
Nothing is 100% sure as usual. However, if you added these $55 million at risk to the fact that MANA has increased by 123% in 14 days, it means MANA is likely overrated & may dump.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
