- Users on CoinDCX can now short 33 new tokens in 66 different markets.
- Shorting on CoinDCX is as simple as taking a long position.
- Pay no interest fees for the first hour of margin trading on CoinDCX.
Unlike popular cryptocurrencies like Bitcoin, Ethereum, Litecoin and a few others, CoinDCX is now offering shorting options on 33 new digital assets in 66 markets (BTC and USDT) on CoinDCX. Users can now maximize their gains when prices go south.
What does Shorting on Margin mean?
CoinDCX believes in taking suggestions from its product users and implementing them at the earliest. Shorting on Margin traders who believe that the price of a digital asset will fall in the future can short sell it. This means that they can sell these assets, even when those assets do not exist in their portfolio and buy them on a later date when the price falls.
Let us take the example of the BTC/USDT pair which is currently trading at $13,422. In case you believe that the price will fall to $12,000 you can short sell it on CoinDCX by simply clicking on “Short BTC”.
The different options of margin availability for leverage only mean how much more of Bitcoins you can sell as compared to your funds available. Selecting 2X means that a person having $500 worth of USDT can short sell Bitcoins worth $1,000 of USDT if he chooses 2X leverage. He will, on a later date have to purchase the remaining Bitcoins and pay them back with interest.
The best part of doing this on CoinDCX is that the process is similar to taking a long position for any cryptocurrency on CoinDCX.
Why now and how is this beneficial to users?
“The crypto market is growing day by day with more tokens added on a regular basis. With the rising popularity of these tokens and increase in demand for shorting cryptocurrencies under various categories, including DeFi, we have decided to make this new feature available to our users.”
Short-selling is a very risky trading strategy that most new traders do not understand. With the rising volume of trades experienced on our platform and with constant feedback, we believe that the market will be more liquid for traders to enter and exit markets as and when required.
Earlier, such markets would not have enough trading volume. In addition to the trading volume, traders have shown great interest in the DeFi tokens, especially because of their use cases and the potential which they have exhibited over the past couple of months. We, therefore, believe that they will be able to make better decisions with minimum losses.
Features of MARGIN
In order to protect our traders from the high risks of shorting as a trading strategy, we will first launch shorting of the new assets with leverage of no more than 2X, with few tokens having leverage options of 3X as well.
As always, the first hour of margin trading is on us.
We will not be charging any interest rate for the first hour. An interest rate of 0.0021% will be charged post that.
We guarantee a simplified and user-friendly trading interface with constant updates on your current PnL.
How to discover Shorts on CoinDCX?
You do not have to go through each token individually to check if shorting options are available or not.
Click on markets and the screen given below appears. Click on Short and a list of all the tokens with short options appears on the list. You can now enjoy shorting them by clicking on Margin to enter your trades!
As an alternative, it can also be discovered via ‘Margin Availability’ which will become ‘Shorts Availability’.