-
Bitcoin
$84,573.6171
4.71% -
Ethereum
$1,935.5841
4.58% -
Tether USDt
$1.0001
0.04% -
XRP
$2.3499
3.91% -
BNB
$585.4788
1.23% -
Solana
$133.9536
8.99% -
USDC
$1.0000
0.01% -
Cardano
$0.7363
4.64% -
Dogecoin
$0.1712
3.98% -
TRON
$0.2213
-1.04% -
Pi
$1.5256
-7.16% -
Chainlink
$14.5391
12.57% -
UNUS SED LEO
$9.7936
0.80% -
Stellar
$0.2752
1.56% -
Hedera
$0.1939
3.74% -
Avalanche
$19.0583
4.24% -
Sui
$2.3577
9.85% -
Shiba Inu
$0.0...01263
5.43% -
Toncoin
$2.8970
5.66% -
Litecoin
$91.9184
5.88% -
Bitcoin Cash
$330.1428
0.69% -
Polkadot
$4.1951
7.46% -
MANTRA
$6.2809
-1.25% -
Ethena USDe
$0.9998
0.02% -
Dai
$1.0000
-0.01% -
Bitget Token
$4.4396
6.90% -
Hyperliquid
$14.4502
12.14% -
Monero
$208.8936
1.57% -
Uniswap
$6.0756
4.73% -
NEAR Protocol
$2.6467
4.64%
Bithumb contract shorting tutorial
To engage in contract shorting, traders establish a Bithumb account, fund it with crypto assets, comprehend the contract market structure, initiate short positions, monitor them vigilantly, and conclude them opportunely, employing risk management tactics to mitigate potential liabilities.
Nov 08, 2024 at 07:55 pm

Bithumb Contract Shorting Tutorial: A Comprehensive Guide
Introduction
Shorting is a trading strategy that allows traders to profit from the decline in the value of an asset. In the world of cryptocurrency, shorting has become increasingly popular as traders seek to capitalize on the volatility of the market. Bithumb, one of the leading cryptocurrency exchanges, offers a robust platform for contract shorting, enabling traders to effectively navigate the dynamic market conditions.
Step 1: Set Up a Bithumb Account
To begin your shorting journey, you must first create an account on Bithumb. The process involves providing personal information, such as your name, email address, and phone number. Once your account is successfully created, you will need to complete the verification process by submitting identity documents.
Step 2: Fund Your Account
Before you can short contracts, you must fund your Bithumb account with cryptocurrencies. Bithumb supports a wide range of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). You can deposit funds into your account through various methods, such as bank transfer, credit card, or third-party payment services.
Step 3: Understand Bithumb's Contract Market
Bithumb offers a diverse range of contract markets, each with its own unique characteristics. The most popular contract market is the perpetual contract, which allows traders to hold positions for an indefinite period. Unlike futures contracts, perpetual contracts do not have an expiration date. Bithumb also offers futures contracts with fixed expiration dates.
Step 4: Open a Short Position
To open a short position, you must first choose the contract market you wish to trade. Once you have selected the market, click on the "Sell" button. You will then need to specify the contract size and the leverage you wish to use. The contract size determines the amount of the underlying asset you are speculating on, while leverage amplifies your potential profits and losses.
Step 5: Manage Your Short Position
Once you have opened a short position, you can monitor its performance in real-time. Bithumb's trading platform provides comprehensive charting tools and risk management features to help traders make informed decisions. You can adjust your position size, leverage, and stop-loss orders as market conditions change.
Step 6: Close Your Short Position
When you believe it is the right time to close your short position, you can do so by placing a "Buy" order. The Buy order will cancel out your previous Sell order and close your position. The difference between the entry price and the closing price, multiplied by the contract size and leverage, determines your profit or loss.
Step 7: Risk Management Strategies
Shorting contracts can be a lucrative but risky trading strategy. To mitigate risks, it is important to implement sound risk management strategies. This includes setting realistic profit targets, using reasonable leverage, and placing stop-loss orders to limit potential losses. Additionally, traders should continuously monitor market conditions and adjust their positions accordingly.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- GENIUS Act to Regulate Payment Stablecoins Passes US Senate Banking Committee
- 2025-03-15 03:30:54
- The Best Wallet Token ($BEST) Raised $11 Million in Presale
- 2025-03-15 03:30:54
- ⚡ $XRP /USDT – Key Resistance in Sight! Can Bulls Push Higher? ⚡
- 2025-03-15 03:30:54
- The official House of Representatives portrait of Mink, circa 1994.
- 2025-03-15 03:30:54
- Pepe (PEPE) Coin Price Recovers After Whales Purchased the Dip
- 2025-03-15 03:30:54
- Rexas Finance (RXS) Prepares to Outpace Cardano (ADA) by Delivering 38x Returns
- 2025-03-15 03:30:54
Related knowledge

What are the advantages of smart contracts?
Mar 14,2025 at 11:51pm
Key Points:Enhanced Security: Smart contracts minimize the risk of fraud and human error through automated execution.Increased Transparency: All transactions and contract terms are publicly viewable on the blockchain, fostering trust and accountability.Automation & Efficiency: Smart contracts automate processes, eliminating intermediaries and speeding u...

What are the application scenarios of smart contracts?
Mar 13,2025 at 03:26pm
Key Points:Smart contracts automate agreements, removing intermediaries.Diverse applications across DeFi, NFTs, supply chain management, and more.Security and scalability remain key challenges.Understanding the underlying blockchain technology is crucial for effective implementation.Legal frameworks are still evolving to accommodate smart contract dispu...

What are the main features of a smart contract?
Mar 13,2025 at 10:20pm
Key Points:Smart contracts automate the execution of agreements. Their core functionality relies on pre-defined conditions and cryptographic security.Immutability and transparency are key features, ensuring that once deployed, the contract's code cannot be altered without consensus (depending on the blockchain), and all transactions are viewable on the ...

How does a smart contract work?
Mar 13,2025 at 09:05pm
Key Points:Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.They operate on a blockchain, ensuring transparency, security, and immutability.Deployment involves writing code, compiling it, and deploying it to a blockchain network.Execution is triggered by pre-d...

What is the settlement method of DOGE contract?
Mar 14,2025 at 09:30am
Key Points:Dogecoin (DOGE) contract settlement methods primarily depend on the exchange or platform offering the contract.Perpetual contracts typically use a mark price for settlement, avoiding the need for physical delivery of DOGE.Delivery contracts require the actual delivery of DOGE at contract expiration.Understanding the specific settlement mechan...

What are the similarities and differences between DOGE contract and Bitcoin contract?
Mar 12,2025 at 12:06pm
Key Points:Both DOGE and Bitcoin contracts offer leveraged trading, allowing traders to magnify potential profits (and losses).Key differences lie in volatility, market capitalization, and underlying asset characteristics. DOGE is significantly more volatile than Bitcoin.Trading fees and leverage limits can vary between exchanges offering these contract...

What are the advantages of smart contracts?
Mar 14,2025 at 11:51pm
Key Points:Enhanced Security: Smart contracts minimize the risk of fraud and human error through automated execution.Increased Transparency: All transactions and contract terms are publicly viewable on the blockchain, fostering trust and accountability.Automation & Efficiency: Smart contracts automate processes, eliminating intermediaries and speeding u...

What are the application scenarios of smart contracts?
Mar 13,2025 at 03:26pm
Key Points:Smart contracts automate agreements, removing intermediaries.Diverse applications across DeFi, NFTs, supply chain management, and more.Security and scalability remain key challenges.Understanding the underlying blockchain technology is crucial for effective implementation.Legal frameworks are still evolving to accommodate smart contract dispu...

What are the main features of a smart contract?
Mar 13,2025 at 10:20pm
Key Points:Smart contracts automate the execution of agreements. Their core functionality relies on pre-defined conditions and cryptographic security.Immutability and transparency are key features, ensuring that once deployed, the contract's code cannot be altered without consensus (depending on the blockchain), and all transactions are viewable on the ...

How does a smart contract work?
Mar 13,2025 at 09:05pm
Key Points:Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.They operate on a blockchain, ensuring transparency, security, and immutability.Deployment involves writing code, compiling it, and deploying it to a blockchain network.Execution is triggered by pre-d...

What is the settlement method of DOGE contract?
Mar 14,2025 at 09:30am
Key Points:Dogecoin (DOGE) contract settlement methods primarily depend on the exchange or platform offering the contract.Perpetual contracts typically use a mark price for settlement, avoiding the need for physical delivery of DOGE.Delivery contracts require the actual delivery of DOGE at contract expiration.Understanding the specific settlement mechan...

What are the similarities and differences between DOGE contract and Bitcoin contract?
Mar 12,2025 at 12:06pm
Key Points:Both DOGE and Bitcoin contracts offer leveraged trading, allowing traders to magnify potential profits (and losses).Key differences lie in volatility, market capitalization, and underlying asset characteristics. DOGE is significantly more volatile than Bitcoin.Trading fees and leverage limits can vary between exchanges offering these contract...
See all articles
