After the recent bank run and insolvency of international exchange FTX, rumors spread widely about other illiquidity issues of other exchanges. One in particular was the marketing machine Crypto.com.
There’s no guarantee that crypto.com will suffer the same fate as FTX but the ‘accidental’ transaction of 320k eth of user deposits to Gate.io on Oct 21st was quite sketchy (funds are currently back on crypto.com).
What happened was an outflow of users’ deposits and a loss in trust, resulting in a price drop in crypto.com’s own token Cronos – CRO.
In order to be safe, users can withdraw their assets from the crypto.com exchange. But, if you are a trader/speculator, you can be tempted to short the Cronos – CRO token.
Can Cronos – CRO Be Shorted?
Yes. You can short Cronos – CRO price by using derivatives. The use of derivatives is bound with risks. Be sure to inform yourself before using leverage.
What is shorting Cronos – CRO?
When you short Cronos – CRO, you aim to sell the token at a high price and buy it back lower. When you are correct and the price drops, you profit from the price movement between when you sold the token, and when you bought it back.
Where can I short Cronos – CRO?
You can short Cronos – CRO on ByBit. The futures market is a derivative where you buy/sell contracts that specify when and at what price the token will be sold. If you sell futures contracts, it suggests a prediction that Cronos – CRO will decline in price. This way you can short Cronos – CRO with contracts that bet on a lower price for the token. Learn more about futures markets here.
What Are the Risks of Shorting Cronos – CRO?
Before you want to short Cronos – CRO, it is a must to know the risks of shorting on futures. If you do a short sell and the price of CRO starts rising, you need to have a bigger collateral to cover your losses with on top of that enough capital to cover possible high funding rates.
Also when a token is announced to be delisted you may not have the ability to recover your position because that token is now non-existent on the exchange ByBit. Be sure to manage your positions and always manage your risk.
Manual: How to short Cronos – CRO?
- Navigate to https://www.bybit.com/en-US/
2. Click here
3. Click “Trade Now”
4. Click this text field.
5. Click this text field.
6. Type “CRO”
7. Click to change your margin account.
8. Click “Isolated”, this means you are NOT using all your assets as collateral.
9. Lower your leverage and click “Confirm”
10. Click “Open Short”. This can be done at market rate/with limit orders (preferred).
