BitShares: How to take out profit from "Borrowing"
What is Shorting?
Image: @btswolf
How To Make Profit
TL;DR: Smartcoins are created ("Shorted/Borrowed") to existence by backing it up with at least 2x the value in BitShares, the underlying asset.
In this example, I shorted HERO initially backed by 2.25x worth of BitShares.
BitShares price went up, which means the collateral "worth" went up as well.
By re-adjusting the slider, I was able to take out 0.5x collateral worth of BitShares - 8.8 BTS - as profit.
- Click Here to get Started
- Click Here to Create an account
- Click Here for in-depth tutorials
► Join Us on Telegram
Buy and Sell Steem & Steem Dollar at best rates!
Blog: FAVS dot PW
Contact: btsfav @ twitter
Steem: ash @ steem ─ Steemit How-To's
When I was buying HERO the other day, I had the choice to simply buy it with BTS or Short it into existence. I haven't come to grips with the shorting process yet so I just bought. This was before the latest huge movement up. I think I would have done better doing as you did. I think I'll put in the time to fully understand this, for the future! Thanks for the article and GIF.
yep, I made good money by shorting HERO.
but let's not forget that you can lose some if bts price drops. what I like about the hero is that it's not TOO bad if you lose, because you still end up with a 5% APR coin in your hands
Very good description of shorting in the cyrpto-space @ash
Why did you decide to short HERO?
haha yeah I get those two points but why did you think it was going to drop so much? Obviously you were right with hindsight!
pure speculation :)
I'm usually not the gambling type, but what makes HERO so cool is that even if I lost, I'd still hold a 5% APR token which would cover some of the losses over time :)
Very interesting!
That's a good one, I'll try it out ASAP
Thanks!! , I was struggling with borrowing ..
I understand that through this we make profit when bts raises , is not it?
But what if I want to protect myself against a BTS price drop?
Are there warrants or somrhing like this?
Why would you short HERO when you can short bitUSD? Hero will actually cost you the prorated 5% interest (you don't earn interest because you're shorting), while bitUSD won't? I'm not seeing the benefit here.
Hello @ash. Thanks for your last help on pointing to where I can buy bitshares.
I've been following your blogs to get some basic understanding.
I feel the need to the little I have in certain things like bitshares. Although the value is low, there seem to be some technicality to it.
I will be glad if you can point me to a tutorial of yours or a link where I can have understanding and use tools rightly. I currently have 69 bts.
Too small. Yes. I intend to but more with my Steem earnings.
Holding bitshares is working quite good at the moment. :)
Thanks. Merry Christmas