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Vancouver Off-Topic / Current EventsThe off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum.
Yea...My jaw was like that red candle when I saw it this morning.
Totally, didn't expect that...
$$$ evaporated just like that...ouch.
Gotta hodl now....
Anyone know what happened ??
My info got nothing shows about this drop.
Straight drop like that, something must have happened.
I think it's just whales fucking around with the "bear market". I don't know how "shorts" and all that shit work, but I see people talking about it so I assume that's what's happening. People start gaining confidence and then they just dump it all, or something like that *shrug*
Either way it's not like some big news story happened. Just one big powerful group caused a quick crash.
I think it's just whales fucking around with the "bear market". I don't know how "shorts" and all that shit work, but I see people talking about it so I assume that's what's happening. People start gaining confidence and then they just dump it all, or something like that *shrug*
Either way it's not like some big news story happened. Just one big powerful group caused a quick crash.
Shorting works like this and works for any asset really...
I borrow a GPU from you, I immediately sell it for $1000
When I feel like prices have bottomed out at $500, I buy it back and return the GPU back to you. I just made $500 off that transaction.
If the GPU increases in price to $1500 and I decide to cover the short, I'll have to buy back the GPU for $1500, I give you the GPU and I lost $500...
Of course, because I borrowed the GPU from you, I'll be paying interest to you until I return the GPU.
I used a GPU as the asset since this is a Bitcoin thread... But yeah, you can make money on falling asset prices...
__________________
"Damn fine car Dodge... Ran over me wife with a Dodge!", Zeke
Shorting works like this and works for any asset really...
I borrow a GPU from you, I immediately sell it for $1000
When I feel like prices have bottomed out at $500, I buy it back and return the GPU back to you. I just made $500 off that transaction.
If the GPU increases in price to $1500 and I decide to cover the short, I'll have to buy back the GPU for $1500, I give you the GPU and I lost $500...
Of course, because I borrowed the GPU from you, I'll be paying interest to you until I return the GPU.
I used a GPU as the asset since this is a Bitcoin thread... But yeah, you can make money on falling asset prices...
I still don't get it.. who is loaning their bitcoins to people to fuck around with at no risk?
Shorting works like this and works for any asset really...
I borrow a GPU from you, I immediately sell it for $1000
When I feel like prices have bottomed out at $500, I buy it back and return the GPU back to you. I just made $500 off that transaction.
If the GPU increases in price to $1500 and I decide to cover the short, I'll have to buy back the GPU for $1500, I give you the GPU and I lost $500...
Of course, because I borrowed the GPU from you, I'll be paying interest to you until I return the GPU.
I used a GPU as the asset since this is a Bitcoin thread... But yeah, you can make money on falling asset prices...
I still don't get it.. who is loaning their bitcoins to people to fuck around with at no risk?
Exchanges. I believe you pay % interest (at least with equities, I have never short crypto so not sure). There are risk because of how volatile it is. Frankly, I would never short something that can move 10%-30% in a few hours and trade 24/7. You can lose your shirt while you sleep. If you don't have an algo running, I would not touch it with a 10ft pole.
You can get a margin call if your balance can no longer pay for your short position, i.e. Exchange will automatically buy to close your position, so there are usually no risk to the exchange itself while they earn daily interests for your short position.
I still don't get it.. who is loaning their bitcoins to people to fuck around with at no risk?
What? For someone who's made a lot of bold statements and assumptions about the cryptomarket in this thread you not knowing what one of the most basic concepts in trading is..... well it's pretty telling.
I can guarantee you people made a huge amount of money by shorting BTC when it was at 19K USD. For what it's worth, crypto has now proven itself too unstable to be viable as a currency. I'd advise investing wisely, focusing on the potential for the tech, not for the potential for CryptoXYZ to be the first global crypto-currency.
What? For someone who's made a lot of bold statements and assumptions about the cryptomarket in this thread you not knowing what one of the most basic concepts in trading is..... well it's pretty telling.
I can guarantee you people made a huge amount of money by shorting BTC when it was at 19K USD. For what it's worth, crypto has now proven itself too unstable to be viable as a currency. I'd advise investing wisely, focusing on the potential for the tech, not for the potential for CryptoXYZ to be the first global crypto-currency.
I believe in cryptocurrency as a "thing". What people Do with it can vary. This includes shorting and longing and all that shit. I never claimed to be a trading expert or an expert of any kind. I just like cryptocurrency
I don't know why you attributed so much trading expertise to me, but it was undeserved. I'm not a fucking banker or an investor. I'm into technology and I'm fascinated by this new technology, and I support it and use it.
Let the bankers make their money, I don't care and don't pretend to know how they do it (though I'm curious, which is why I asked about it here)
If anything I've been making fun of the people who think they are an investing expert all of a sudden, when really they're just as ignorant about it as I am and ended up losing a lot of money
I tend to not short anything. The losses can be infinite. When you buy an asset, your losses can only be what you put into it. When you short, the value can keep going up to infinity and so will your losses. In reality, that doesn't happen but the fear of it happening keeps me from shorting too often and if I do, it's never any big amount. So if you short, you better be damn sure the price is going to fall.
__________________
"Damn fine car Dodge... Ran over me wife with a Dodge!", Zeke
You don’t always have to borrow from exchanges or brokers to short.
Futures. You can just short it without “borrowing” but the profit and losses are real time added or deducted from your account per every tick up or down. Don’t think of the example above it gets confusing cuz the natural question comes up of how are you borrowing it? All u gotta imagine is you’re betting up or betting down and you make the difference in the direction of the bet.
If you wanna buy. You buy low sell high. Once a buy and sell are matched. You make the diff.
If you wanna short. You sell high and buy low. Same shit but backwards. Once the sell and buy are matched. You make the difference.
You can buy or sell first. You just need to sell or buy again to flatten your position and realize the profit or loss.
I assume options on these futures will come out eventually too. Which allows you to bet both ways too.
Now I highly doubt anyone on this forum has the money or stomach to short the futures as one contract has an initial margin of 50k usd small contract and 250k usd for the big contract.
I have no intentions to trade, though I did a bit of buying and selling on my exchange during waves since the withdrawal fee was so expensive. The whole thing seems gross to me, the idea of trading things that don't exist or haven't happened yet.
Ended up making a few hundred $ but I wouldn't risk much more than that
Also I understand shorting, I am just not sure who is lending out all this bitcoin to these people. Now I know
Yeah those low residential rates you enjoy are basically subsidized for people who use power for 'normal' things like heat and lighting. If you use too much you lose your subsidy and are now running as a business
I think it also has to do with tax season. People selling crypto to pay taxes.
Why would you want to unload for tax reasons. If your going to rebuy at the same adjusted cost basis and then now your out for taxes holding the same thing.
Why would you want to unload for tax reasons. If your going to rebuy at the same adjusted cost basis and then now your out for taxes holding the same thing.
Ryan Taylor, CEO of Dash Core, which provides software used by Dash traders, said that investors are jumping back into the cryptocurrency market at the end of a tax-related sell-off. He said they've been unloading bitcoin and other cryptocurrencies in recent weeks to pay their looming tax bills. But with tax day, April 17, rapidly approaching, most of these investors have paid their tax bills, he said, and some investors have received tax returns that they're spending on cryptocurrencies.
"The selling pressure associated with tax day has subsided right now," said Taylor. "As people get their tax returns, there may be new money entering the market."
__________________ Until the lions have their own historians, the history of the hunt will always glorify the hunter.
Why would you want to unload for tax reasons. If your going to rebuy at the same adjusted cost basis and then now your out for taxes holding the same thing.
Reminds me of a video I watched about Uber.
One example they used is someone made $400 off of Uber to pay the rent that was due very soon. Of course, with the way Uber works, most people will lose money because there is more gas cost, more depreciation and sooner maintenance, but heh, as long as they can meet the need right now, that's all that matters to them.
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