What does it mean to buy long and sell short Bitcoin (the scam of short selling and long buying Bitcoin)?

What does it mean to buy long and sell short Bitcoin? What does it mean to buy long and sell short Bitcoin?

In the bull market of 2017, the price of Bitcoin rose from $30,000 to a high of $25,000. As the price of the currency continued to rise and market attention decreased, many people began to focus on short-term operations in the Bitcoin market, also known as “large-scale long buying.” So why does this situation occur? There are several reasons:

1. Investment risk is high. When investors have different market judgments, they tend to choose to buy long or sell short. However, this issue is only considered when the time period is extended.

2. Because many traders are not particularly profitable, most people do not participate in arbitrage. Instead, they obtain profits through manipulation and leverage.

3. Some individuals with large amounts of funds may not be able to control their investment behavior, resulting in reduced income and losses.

The scam of short selling and long buying Bitcoin

Editor’s note: This article is from Bitcoin Information (ID: bitcoin8btc), written by Fang Qinyu, and authorized by Star Daily.

This morning, I opened a screenshot on WeChat, which shows a scam about short selling and long buying Bitcoin.

https://www.huodongxing.com/cn/trader-defi-onboarding?utm_source=https://ethnews.com/cryptocurrencies/

Then we started looking at the advertisements on this website. It will display some false trading information-for example, when you view a page, the platform displays a “long” or “short” trade. On your page, they show some kind of “market maker” and tell you, “This is our ‘market making’ mode.” But this is not a real market maker. In fact, “cryptocurrency exchange” is such a project. However, in reality, “over-the-counter trading” (OTC) is the most commonly used trading method in the market currently. If we compare these prices and market makers, two situations will occur. 1. High-profit arbitrage robots

This strategy effectively manipulates investors’ price behavior. For example, you can exchange 100 BTC for $100,000 in cash. That is, if you want to buy 1 ETH with 100 BTC, you can use 50 BTC to buy and sell 1 ETH. But if you don’t want to buy 1 million BTC at a price of $5, you need to convert back to 5,000 BTC from 1,000 to 200 million dollars. Such operations are easily used to manipulate the market and cause massive liquidation and losses once there is a drastic fluctuation.2. Wealthy individuals taking advantage of low prices

For wealthy individuals, the best investment opportunity is to find small retail investors and profit from closing positions at high points. Therefore, do not easily give up the chips in hand or hold part of the funds.

3. Leveraged futures contracts

In many cases, users do not hedge risks like ordinary people, but instead reduce risks while maintaining profitability. Therefore, it is a typical scam for short positions to enter the market when you know that allocating your investment portfolio to a large investor is a huge trap and a typical way for market manipulators to enter the market.4. Altcoin lending

The so-called “altcoin lending and mining” refers to the provision of liquidity, allowing people to participate in the income exchange between various DeFi tokens, which generates income and can even achieve extremely high annualized returns.

However, sometimes, due to the inability to solve the liquidity gap in time, the profits of many speculators have decreased significantly, especially in bear markets. This strategy is more popular, especially when you discover a new project. At this time, even those who have just entered the bear market can join in and earn more funds.5. 1inch is a fork currency similar to UniswapV2, and its distribution mechanism reduces rewards every 30 minutes per block.