Crypto.com Leveraged Short Selling Tutorial

Crypto.com Leveraged Short Selling Tutorial

IntroductionLeveraged short selling is an advanced trading strategy that allows traders to potentially profit from the decline in the price of an asset. By using leverage, traders can multiply their potential profits while also increasing their risk. On Crypto.com, you can implement leveraged short selling via their derivatives platform, where you can trade perpetual contracts with up to 50x leverage. This tutorial will provide a step-by-step guide on how to short sell cryptocurrencies on Crypto.com with leverage.

Step 1: Create a Crypto.com AccountIf you don't already have a Crypto.com account, you'll need to create one. You can do this by visiting the Crypto.com website and clicking on the "Sign Up" button.

Step 2: Deposit Funds into Your AccountOnce you've created an account, you'll need to deposit funds into it. You can do this through bank transfer, credit card, or cryptocurrency.

Step 3: Enable Derivatives TradingTo access leveraged short selling, you need to enable derivatives trading on your Crypto.com account. This can be done by completing their derivatives quiz.

Step 4: Find the Perpetual Contract You Want to Short SellCrypto.com offers perpetual contracts for various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. You can find the perpetual contract you want to short sell by searching for it in the search bar.

Step 5: Place a Short Sell OrderOnce you've found the perpetual contract you want to short sell, click on the "Short Sell" button. This will open up the order form. In the order form, you'll need to specify the following:

• The number of contracts you want to short sell
• The leverage you want to use
• The price at which you want to place your order

Step 6: Monitor Your PositionOnce you've placed your short sell order, you'll need to monitor it. You can do this by clicking on the "Positions" tab in the derivatives platform.

Step 7: Close Your Short Sell PositionWhen you're ready to close your short sell position, you can do so by clicking on the "Close Position" button.

Risks of Leveraged Short SellingLeveraged short selling is a high-risk trading strategy. It's important to understand the risks involved before you start trading. Some of the risks of leveraged short selling include:

• The potential for unlimited losses
• The risk of liquidation
• The risk of margin calls